2D-HOME DEDUCTION IS BACKED
A working group of members of the House Ways and Means Committee, rejecting President Reagan's proposal, voted today to permit taxpayers to deduct all their interest payments on mortgages on second homes. The six-member bipartisan group also rejected another proposal by the President that would limit deductions by real estate investors to the amount of money they actually invest and the amount of mortgages they are personally required to repay. The group's recommendations are likely to be adopted by the full Ways and Means Committee Tuesday and incorporated in the tax legislation it hopes to send to the floor of the House of Representatives for a vote next month. So far the committee has accepted the recommendations of its working groups without change.