Tallahassee Real Estate Blog

The National Commisssion on Fiscal Responsibility and Reform released its December 1 report today.

Part of the report addresses "tax expenditures" - special tax laws that carve out about $1 trillion in tax breaks for special purposes.  One of these breaks is the home mortgage interest deduction.  As part of a comprehensive reform, the report suggests the deduction might be narrowed to cap qualified mortgages at $500,000; include only primary residences, and offer a 12% tax credit to all taxpayers.  In return for this and other reforms, the committee says overall tax bracket rates for all taxpayers can be lowered by 5 to 10 percentage points. 

Is this good for Tallahassee real estate owners?  If it was enacted as part of a reform that really did lower overall tax rates, it could be.  However, in the short term, it could make potential homebuyers think twice about a new home purchase.     

To see the full 66 page report, click here

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