CALM BEFORE THE STORM- WHAT'S IN STORE FOR HOME OWNERSHIP?
Topic Summary: With the Presidential election getting close, we will be reporting on candidate's views on home ownership and their ideas on policies to support a sustainable recovery. But, no matter who wins the White House, there will surely be efforts to scale back the incentives of being a home owner.

Each candidate has not given their specific ideas on deductions important to many homeowners, the Mortgage Interest Deduction being one of them.

Romney has said that he'd close loopholes and kill or reduce deductions to help raise extra revenue to finance his across-the-board tax cuts. But he hasn't identified any specifics. Obama would look at limiting deductions, such as those for mortgage interest and health insurance, to a maximum of 28 percent at certain income levels.

What will be looked at:

Mortgage Interest Deduction for Second Homes. Some say that if you can afford a second home, does the Interest Deduction really matter in the financial analysis? Others show the huge impact that the second home industry has on the economy. Also remember this, most members of Congress have second homes in the Washington D.C. area! We will watch what they say and do.

Equity Loan Interest. With certain guidelines met, homeowners can deduct interest on Home  Equity loans. This may be an easy target.

Principal Home- Mortgage Interest Deduction. For years it has been considered a "sacred cow", but next year there will be efforts made to reduce this tax savings deduction.  What many say will happen is a lowering of the amount you can deduct by a percentage based on your income. This would seem make it more equitable.

But At What Level?  In all that has been mentioned by candidates, the level of income that is talked about is $200,000 for singles and $250,000 for couples. Above these levels more deductions will probably be taken away. Below these levels, who knows!

In the next edition we hope to get you more specifics on the future of the incentives to home ownership.