Apparently, yes. Today is Monday, the second of March. On Wednesday, President Obama’s plan for rescuing homeowners and the housing market is expected to be released in detail. But at this point, a reduction in the amount of mortgage income that can be deducted on the taxes of households making $250,000 or more annually is definitely in the plan.
Already, interest is only deductible on up to $1 million of debt used to acquire, construct, or substantially improve the residence, or up to $100,000 of home equity debt regardless of the purpose or use of the loan.
Sure, $250,000 in household income sounds like a fortune if you’re living in, say, a Midwestern town where median household income is $30K to $40K. But in high-cost-of-living areas such as California and the Northeastern U.S., that amount is usually considered merely “comfortable,” and in super-high-cost-of-living cities such as San Francisco and Manhattan, $250K is simply…the middle class.
Click here to read more about the plan as it now stands.