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HeadSet saysHopefully the primary residence and vacation Home Mortgage Deduction will be phased out completely. Interest should be deductible only as a business expense (property bought to rent or flip), never for personal consumption.
How do you propose to differentiate between "flippers" and "consumers"?
Patrick saysBeginning in 2018, the deduction for interest paid on a home equity line of credit (“HELOC”) will no longer be eligible for the home mortgage interest deduction.
This is where people who's houses really appreciated, like in CA, will get spanked the worst. Those who tapped into their equity for college, trips, new play toys, new pools, etc. will find that they no longer can deduct that interest.
•About 18 million taxpayers are expected to itemize in 2018. That's down from 46.5 million last year.
https://www.cnbc.com/2018/04/23/tax-bill-will-slash-the-number-of-homeowners-claiming-the-mortgage-deduction.html
claimed I wouldn't be saving money.
(Hint, that actually puts money IN your pocket, versus spending it.)
As a result of doubling the standard deduction to $12,000 for single filers and $24,000 for married filing jointly, according to Moody’s Analytics, as many as 38 million Americans who would otherwise itemize may instead choose the higher standard deduction under the new tax plan. The doubling of the standard interest deduction, in essence, removes a tax incentive of moving from renting a home to home ownership and a likely outcome will be fewer Americans choosing to become homeowners versus renters solely for the tax advantages.
Patrick saysAs a result of doubling the standard deduction to $12,000 for single filers and $24,000 for married filing jointly, according to Moody’s Analytics, as many as 38 million Americans who would otherwise itemize may instead choose the higher standard deduction under the new tax plan. The doubling of the standard interest deduction, in essence, removes a tax incentive of moving from renting a home to home ownership and a likely outcome will be fewer Americans choosing to become homeowners versus renters solely for the tax advantages.
Absurd. Median first time home buyer 180k. With 20% down 144k mortgage or 5k a year interest on the biggest year. If you had enough property taxes and local income taxes to actually itemize you would save something like 1800 on your taxes or 150 a month. People with 200 cable bills are giving up home ownership for 150 a month? Beyond absurd.
The article was written by an ASP...
Great! Remove the deduction altogether then. It's crony socialism anyways. Have a flat tax on everything and one flat deduction. Or none. We agree.
'Savings' as an economic term IS defined as 'income not spent, or deferred consumption '.
If I misrepresented the textbook definition of savings, my apologies.
There will besavingsborrowing for most with the new tax plan
The very wealthy would not have become very wealthy (at least those that didn't inherit) without the benefits provided by the government no matter how much they try to sell this self made man crap. Educated work force, a system of law, infrastructure, safe from war, etc., etc., etc. The people who have made a greater gain have a greater obligation.
The claim of $9k of savings versus the reality of the situation in my previous conversation is what I was addressing. I'll still stand by my statement though, not spending money is not spending money. If you made the same amount every year and all your spending went to your living expenses, I'm not sure how you're saving anything.
bob2356 saysThe very wealthy would not have become very wealthy (at least those that didn't inherit) without the benefits provided by the government no matter how much they try to sell this self made man crap. Educated work force, a system of law, infrastructure, safe from war, etc., etc., etc. The people who have made a greater gain have a greater obligation.
That would assume that they got a "greater" use of those same public services. Did they? how do you know?
If you've been spending actual dollars for decades, and listing those dollars spent and getting a deduction for those dollars on (Sch. A), now next year, you DON'T spend those dollars but still get to take the deduction as if you spent them, that is calling "saving money" out of pocket.
State and local taxes (referred to collectively as “SALT”) can be deducted but will no longer be unlimited as under current tax law.
That would assume that they got a "greater" use of those same public services. Did they? how do you know?
If you've been spending actual dollars for decades, and listing those dollars spent and getting a deduction for those dollars on (Sch. A), now next year, you DON'T spend those dollars but still get to take the deduction as if you spent them, that is calling "saving money" out of pocket.
Why do so many people get this wrong?
In 2017 tax year, the phaseout of itemized exemptions started when you AGI reached $261k (single) and has limited your itimized exemptions to a total of $4050 by the time you reach $384k.
#housing