CHICAGO - Income deductions that benefit those paying home mortgages may be endangered, and for some, the American dream of owning a home could lose its mystique if, via federal income tax reform, interest writeoffs are eliminated. The formally untouchable mortgage deduction is now being mentioned as a possible major change, ChicagoRealEstateDaily.com says, but if it happens, less than a third of Illinoisans will be affected.
But such a dramatic change could hurt the real estate market that's already been devastated with foreclosures and plummeting home values. More HERE.
Only about 29 percent of Illinois residents who filed federal tax returns in 2008 claimed the deduction, reducing their taxable income by an average of $11,593, according to a paper by the Tax Foundation, a Washington-based think tank. The foundation does not have more recent figures.
Nationally, nearly 27 percent of taxpayers claimed the deduction in 2008, with claimants receiving an average deduction of $12,221 that year.
Is it time to end the home mortgage tax deduction? Would a tax credit be more fair? Your thoughts ... And "like" if you think the topic should be on Congress' income tax reform table.