Banks Brace for What Follows Fiscal Cliff Deal
The fiscal-cliff deal also reinstates a cap on total itemized deductions and personal exemptions for some high-income taxpayers, which could have a muted effect on the popular mortgage interest deduction.
"That is a backdoor way of reducing the impact of the mortgage interest deduction among the top 2% of taxpayers in the country," said Gardner, while noting that the change is "small potatoes" relative to the scope of the overall mortgage deduction.
