The chart nearby lays out some possibilities.
“The mortgage interest deduction, which allows 35 million homeowners to write off their mortgage interest payments, may be in for serious restructuring if ongoing efforts to pare the bulging federal debt are broadened.
As part of the just-concluded debt ceiling debate, a bipartisan group of senators known as the “Gang of Six” proposed lowering the limit on mortgages eligible for the deduction from $1 million to $500,000 and restricting the tax break only to primary residences.
But as it has through decades of federal budget cuts and crises, the popular provision emerged unscathed in the debt-limit compromise that President Barack Obama signed into law Tuesday. That reprieve, however, may not last.
Discuss . . .