I’m old enough to remember the time before the capital gains exclusion. It wasn’t that long ago – 1997, IIRC.
Because the rules could change again – people should save receipts for major improvements. I got in the habit with my first home and have continued this practice… just in case. IIRC the old rules didn’t tax the gain if you rolled it into an equal or more expensive house within 2 years.
As far as the mortgage interest exclusion… again, I remember when all credit interest was deductable – including credit cards. (until the mid 80’s). I think most of us would agree that credit card debt isn’t “good debt” and shouldn’t be favored in the tax code.
Personally, I won’t be impacted too much by the mortgage interest rate deduction changes – if they happen… I don’t earn enough and I’m doing my darndest to eliminate mortgage interest payments by paying off my house quickly. I’d rather have that money for my use – and the only way to eliminate mortgage interest payments is to pay off the mortgage.
