Legislature Proposes Bill to Eliminate Interest Deduction on Second Homes

Legislature Proposes Bill to Eliminate Interest Deduction on Second Homes

AB 73, is a bill pending before the California legislature, which would eliminate mortgage interest deductions on second homes. The purpose is to fund an increase in low-income housing tax credits. It is predicted that if the deduction is eliminated for second homes, 2,152 homes sales would be lost in the first year alone, which could have an economic loss of $180,200,000 to the State of California. CAR is currently opposing this Bill.

-Shannon B. Jones, Partner, sbj@sbj-law.com