President Bush's tax reform commission tentatively agreed Tuesday to recommend a substantial reduction in the limit on mortgage interest that homeowners can deduct from their taxes.
If a uniform nationwide cap was chosen to replace the current $1-million limit on mortgage debt eligible for deduction, it could be widely felt in California, which has some of the nation's highest home prices.
But to account for the wide disparity in home values nationally, the panel considered recommending a ceiling based on local housing prices but left the issue open, to be decided later. Some panel members suggested basing the limit on the Federal Housing Administration's maximum on mortgages it will insure — currently $312,895 in Southern California.
Wednesday, October 12, 2005
Panel Supports Cut in Mortgage Deduction
The L.A.Times reports:
