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To: Tradelite who wrote (145725)	1/23/2002 7:03:29 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

Since you and I have gone 'round and 'round on real estate on the other thread I don't want to get into it here but there was an interesting story on NPR today which touched on the AMT, alternative minimum tax and how when it was set up it was primarily set up to make sure rich people paid at least some tax but now because of bracket creep it will effect largely middle to upper middle class tax payers (60k-200k). One of the things the interviewee pointed out is that when AMT is triggered there are a lot of deductions that will disappear, like large real estate tax payments, big mortgage deductions, state tax deductions....even exemptions for children. That mortgage deduction has always been a sort of sacred untouchable, I'm curious if the real estate professionals are aware of the implications of it disappearing on the high end. I think if people had to pay the real cost of borrowing one of two things would have to give, either mortgage rates would have to come down or home prices.