If you take mortgage-interest tax deductions, the next 100 days could have significant financial implications for you, thanks to Congress’ federal debt-ceiling plan.
Though the compromise legislation involved no new taxes, it created an unusual mechanism — an evenly split, 12-member bipartisan super-committee — that could call for major cutbacks in real-estate write-offs by Thanksgiving.
All it will take is a single vote by a lone senator or House member who breaks with his or her party to put the mortgage-interest deduction into serious play.
Here is what’s about to unfold and how it could affect you:
The legislation signed by the president Aug. 2 calls for a two-step increase in the federal debt ceiling plus spending cuts of about $917 billion. It also created the Joint Select Committee on Deficit Reduction with the goal of slashing an additional $1.5 trillion from the deficit over the coming decade.