The current federal individual income tax rates are set to expire at the end of 2012. Should Congress raise or lower the tax rates next year or keep them the same? That’s the debate that has begun. Competing visions of tax changes have been introduced in Congress:
Because this is an election year, it may be that Congress simply extends the current Bush-era tax rates for another year, which would allow the new Congress to take up the matter.
Debt secured by a principal residence or second home to the extent of the excess of fair market value over acquisition debt. An interest deduction is generally allowed for home equity debt up to $100,000 ($50,000 if married filing separately).