Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, June 20, 1990 TAG: 9006200393
SECTION: NATIONAL/INTERNATIONAL PAGE: A/4 EDITION: EVENING
SOURCE:
DATELINE: LENGTH: Short
On the other hand, the recommendation by the staff of the Joint Committee on Taxation could result in restoration of at least part of the consumer-interest deduction, which will expire at year's end.
The House Ways and Means Committee released the proposals Tuesday.
About 25 million taxpayers claim the deduction for home mortgage interest. The law allows a full deduction of interest on a loan of up to $1 million used to acquire a principal or second home and on home-equity loans of up to $100,000. Investment interest is generally deductible up to the limit of income earned on investments. After this year, no consumer interest, including automobile loans and credit cards, can be deducted.
The tax committee staff proposed these alternatives for writing off interest:
Combine all non-business interest, including that for mortgages, consumer debt and investment borrowing, and deduct a set percentage of the total, perhaps 75 percent.
Deduct interest equal to net income on investments, plus some additional dollar amount.
Retain the current law for mortgage interest and allow a separate write-off for other interest, limited to net investment income. The portion of other interest that could not be deducted in the first year because of the limitation could be carried over into future years.
-Associated Press
by CNB