[lbo-talk] US immiseration

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Mar 7 11:11:02 PST 2007



> People have started viewing their houses as gigantic ATMs.

That's going to start slowing down, now that the IRS has caught on.

http://www.irs.gov/publications/p936/ar02.html#d0e2092

Short answer: there's now a limit to how much "home equity" debt you can deduct. In particular, people who are tapping 'present value equity' (as oposed to paid-in equity) will lose the deductability of such tapping and, hopefully, will be less likely to incur it in the future.

/jordan



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