Is my interest cost deduction going away?11/29/2017
So what is all the fuss about? If you currently own a home, and are not moving soon, it will have no impact on you. However, if you move into a new home, with a purchase price of at least $500,000 you will be impacted. The change is a reduction from the previous price limit which was $1,000,000. So more people will be impacted, and especially in areas with higher home prices. In addition, if you are on the lower end, doubling the standard deduction may result in a greater tax benefit than the mortgage interest deduction. I will see if I can come up with an illustration to show this a bit better. In the meantime, to the extent that some people will be better off not itemizing, and taking the standard deduction, the tax process will be simpler and less costly, and may even put some tax accountants out of business.