I recently wrote a blog post about some items in the new tax plan. And I was wrong about something. Hey – I am not afraid to admit I made an error. SO let me use this space to correct what I said.
I was writing about a section of the proposed tax plan that deals with deducting interest from your mortgage. And, in further investigation, I discovered that I misinformed my readers.
I stated that the mortgage interest deduction would remain in the tax plan. I further went on to say that the amount of the interest that could be deducted would be capped at $500,000. The source I was reading was not clear on that, but I read what they said to mean that you could only deduct up to $500,000 per year from your taxes. But have read more, and would like to clarify this. The proposed tax plan seems to say that you can only deduct the mortgage interest on the first $500,000 of the mortgage.
Actually this makes more sense. But first, my web guru wants me to pause for a word from our sponsors. And are sponsors are…
Bunny and Art Reiman – Realtors. To begin your search for a new home, or to learn about the necessary steps to sell your existing home, visit us online at www.BunnyandArt.com www.55PlusInOcean.com or www.55PlusinMonmouth.com . Or, better yet, call us at 732-598-7700. We can help like we have helped hundreds of other people.
Let’s continue. If you were to deduct more than $500,000 in mortgage interest in one year, the amount of the mortgage would probably be about $20 million dollars. In retrospect, deducting the interest on a mortgage amount of $500,000 is more realistic. And there are many people who have a mortgage in the amount of $500,000. Or more.
So, I hope that nobody used my bad info from yesterday when calculating whether or not they could buy a house. But if they did, they did not heed my disclaimer that I am not a financial expert or a tax professional. I am a Realtor.