WASHINGTON – Aug. 12, 2013 – Since Congress has taken off on its annual summer recess, you might assume that nothing is happening on Capitol Hill that could affect the taxes you pay on your home. Quite the reverse.
Staff members of the House and Senate tax-writing committees are busy putting together legislative drafts that may determine the fate of real estate’s most prized tax benefits – first and second home-mortgage interest deductions, property tax write-offs, capital gains exclusions and others.
Both committees’ chairmen have promised major tax reform proposals this fall. They’ve been evaluating deductions, credits and loopholes in terms of revenue costs and economic benefits, including the $70-billion-plus yearly expense of the mortgage interest write-off. The process that’s underway represents the most serious effort to simplify and reorganize federal tax law since the Tax Reform Act of 1986.