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HIGHER-INCOME individuals will be able to earn several thousand dollars more income in 1994 before their real estate writeoffs are cut back.
Most itemized deductions-including those for mortgage interest and property taxes-will now be reduced by 3 percent of the amount your adjusted gross income exceeds $111,800, up from $108,450 in 1993. The thresholds are adjusted annually for inflation.
Affected homeowners should keep these limitations in mind when shopping for a home because they effectively raise the out-of-pocket cost of homeownership.
