[tubebender]

Perhaps they should abolish the mortgage deduction for rental property also? Then the landlord could raise the rent to make up for the lost deduction and everyone could suffer equally.

Of course the bank would own the property because the decrease in value put the owner upside down just like the S/L debacle.

[Alberta's Child]

Perhaps they should abolish the mortgage deduction for rental property also?

The difference between a mortgage interest deduction on a rental property and one on a personal residence is that the rental property is used to generate income that is reported to the IRS. The mortgage interest is nothing more than one line item on a balance sheet that includes a bunch of costs associated with doing business.