Quote:
Originally Posted by VanceAce
I'm really wondering how big the affect will be. I mean, it's got to cut the housing market of every major city by -- 10% - 15% -- at least, right?
That'll trickle down to the suburbs pretty soon after...
Losing the state and local income tax deduction means large numbers of people who currently itemize will now claim the increased standard deduction instead. (I've read estimates that as many as 90% of people who currently itemize will be better off claiming the standard deduction, which is why charity organizations are worried.)
This means even if you still can deduct it most people won't be.
But I happen to currently know people who don't even itemize yet somehow believe that paying mortgage interest is helpful! I used to be one of these morons until my accountant told me that in the past I only infrequently itemized, when I always thought I did every year.
Reality may or may not intrude upon how people digest this change.