Mortgage interest deduction going away

[GROUCHO MARX]

You may have heard or read that the new budget is limited the amount of mortgage interest that would be deductible. I believe that the deductibility corresponds to level of income.

I remember when interest on a car loan or any credit (Sears, Macy's) was deductible. That was prior to 1986.

 

[jmac]

If I made a comment on this at all this thread would be locked.

 

[Steve S]

The government is your friend it is here to tax you!

 

[ajchien]

that would be a hard pill to swallow.
thats my biggest tax deduction, and if it goes away ...

you might put me on the foreclosure or short sale list

 

[Billy_D]

The mortgage interest deduction can only be taken if itemized deductions exceed the standard deduction. Many homeowners use the standard deduction and don't bother with the mortgage interest deduction.

 

[Gary Allan]

Create fewer producers ..those producing pay.

All those useless eaters. That will teach 'em...

 

[Steve S]

This country has to be lowered to third world levels if the us will blend into the new world order. We are getting there right on schedule.

 

[jmac]

I can't think of one homeowner that doesn't take the interest deduction.

 

[ajchien]

Originally Posted By: Billy007
The mortgage interest deduction can only be taken if itemized deductions exceed the standard deduction. Many homeowners use the standard deduction and don't bother with the mortgage interest deduction.


wow. i would argue that those in big cities like NY, SF, LA, Chi, probably have mortgages that far outweigh the standard deduction.

 

[Drew99GT]

For us peons at 28% marginal rates or below, we won't be affected. He's capping itemized deductions at a max of 28%.

So no, the mortgage interest deduction IS NOT GOING AWAY. Even for the richest human being living in the US.

Sheesh, the left wing media wouldn't even run a title that misleading.

The right wing media though...

 

[posty]

Change you can count on!

 

[Shannow]

Never understood why you can deduct interest on your own home over there.

Down here, you can only claim interest on the ones that you are renting to people who can't afford to buy.

 

[Gary Allan]

Oh ..wealth needs help there too?

 

[posty]

Heard this today. You know that tax break we getting,about 13 more dollas in your pay check starting in April. Well, turns out it is just an adjustment in your withholding no actual lowering of the tax rate. So its no tax break at all you still owe the money.

 

[GMBoy]

Originally Posted By: Drew99GT
The right wing media though...

Never saw any right wing news media....

 

[PandaBear]

Originally Posted By: ajchien
Originally Posted By: Billy007
The mortgage interest deduction can only be taken if itemized deductions exceed the standard deduction. Many homeowners use the standard deduction and don't bother with the mortgage interest deduction.


wow. i would argue that those in big cities like NY, SF, LA, Chi, probably have mortgages that far outweigh the standard deduction.


4x the standard deduction.

 

[urrlord]

of course in many areas of the country your home loan is not large enough to qualify.don't pay enough interest to qualify.

 

[Drew99GT]

Originally Posted By: posty
Heard this today. You know that tax break we getting,about 13 more dollas in your pay check starting in April. Well, turns out it is just an adjustment in your withholding no actual lowering of the tax rate. So its no tax break at all you still owe the money.


Actually, it's the Making Work Pay tax credit. So yes, depending on your AGI etc., this will lower your actual taxes owed by $500 single/$1000 married filing jointly.

It phases out at 75K single, 150K married filing jointly.

 

[Shannow]

Originally Posted By: Gary Allan
Oh ..wealth needs help there too?


Guy at work owns a dozen rental properties.

Apparently the first one's the worst, then "they pay for themselves".

When he only had 9, he had the misfortune to sell one in Sydney at a profit...that left him 6 weeks to buy another 4 locally, or he'd have had to pay tax on it.

 

[xlt4me]

Originally Posted By: jmac
I can't think of one homeowner that doesn't take the interest deduction.


I can't think of one that does. If YOU own your home, not the bank, then you don't pay interest and you don't get a deduction. Actually, you can own your house but you can't own the land that it is on. You just have exclusive use rights as long as you pay the real estate tax.