Whoa – I missed this story last week…yep, this would affect a lot of people…
By Kenneth R. Harney, Boston Herald wire
WASHINGTON – Is Congress about to kill a popular rule that allows you to deduct interest paid on home-equity loans and lines of credit? The staff of the influential Joint Tax Committee, which advises the House and Senate on tax issues, recently proposed lawmakers consider doing just that.
Currently, the Internal Revenue Service lets you deduct interest on up to $100,000 of money borrowed against a primary residence through a home-equity loan or line of credit. That’s in addition to another rule allowing homeowners to deduct interest on up to $1 million of a primary residence’s first mortgage.
However, a new "options paper” written by the joint tax committee’s staff proposed nixing the deduction for home-equity-loan interest.
The paper, which suggest options for closing the federal budget deficit, estimates eliminating this deduction would add $22.6 billion to government coffers between now and 2009.
Complete article: Will U.S. kill deduction for home-equity loans?