Cap on itemized deductions re home ownership

[cilantro]

So, I just read the current status of the proposed deal, with involves a cap on itemized deductions for families making over $300k. So how much less desirable is it now for those of us in that boat to ever become home owners? What does this all effect? I presume mortgage interest deduction is out. Thanks!

Also, I presume I won't be able to deduct state and local taxes anymore?

[yourmom]

Can you share where you go this? I'd love to read more.

[cilantro]

www.cnn.com/2012/12/31/politics/fiscal-cliff/index.html?hpt=hp_t1

Buried in it, it says:

The deal would also increase the estate tax to 40% from the current 35% level and cap itemized deductions for individuals with incomes above $250,000 and household income over $300,000, the source said.

[yourmom]

Dec 31, 2012 17:09:07 GMT -5 BirdGirl said:

Dec 31, 2012 17:00:28 GMT -5 cilantro said:

www.cnn.com/2012/12/31/politics/fiscal-cliff/index.html?hpt=hp_t1

Buried in it, it says:

The deal would also increase the estate tax to 40% from the current 35% level and cap itemized deductions for individuals with incomes above $250,000 and household income over $300,000, the source said.

I assume it's a cap of a certain amount versus no deduction at all. It would certainly not do good things to the property values in our neighborhood. It's one of only 2 deduction we take and the only reason we don't rent.

This is us as well

[cilantro]

Dec 31, 2012 17:09:07 GMT -5 BirdGirl said:

Dec 31, 2012 17:00:28 GMT -5 cilantro said:

www.cnn.com/2012/12/31/politics/fiscal-cliff/index.html?hpt=hp_t1

Buried in it, it says:

The deal would also increase the estate tax to 40% from the current 35% level and cap itemized deductions for individuals with incomes above $250,000 and household income over $300,000, the source said.

I assume it's a cap of a certain amount versus no deduction at all. It would certainly not do good things to the property values in our neighborhood. It's one of only 2 deduction we take and the only reason we don't rent.

I hope you're right. I wasn't sure.

[yourmom]

I'm afraid the cap isn't going to be high enough for VHCOL areas (the Bay Area).