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Thread: Popular mortgage deduction could get a haircut in tax reform

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    Quote Originally Posted by Alice in Liberaland View Post
    Take a $600,000 mortgage. Using 3.25% interest and a 30 year mortgage, you will pay back $340,000 in interest over the life of that loan.

    No mortgage interest deduction will cover that


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    Of course it won't, did you want the Government to pay for the interest the bank charges?

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    Quote Originally Posted by archives View Post
    First time home buyers live across the country, and it is a big part of their deductions, political kryptonite no matter where one lives

    What they ought to do is limit it to primary residency, it shouldn't apply to the guy who buys a camp or second residence
    Don't worry you will still be able to deduct your mobile home Legion. Ya gotta keep Christiefan comfy

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    Quote Originally Posted by Alice in Liberaland View Post
    Don't worry you will still be able to deduct your mobile home Legion. Ya gotta keep Christiefan comfy
    Nah, I live in one of those blue States in the NorthEast, it is your Trump supporters who live in home with septic tanks

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    Quote Originally Posted by Alice in Liberaland View Post
    Take a $600,000 mortgage. Using 3.25% interest and a 30 year mortgage, you will pay back $340,000 in interest over the life of that loan.

    No mortgage interest deduction will cover that



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    Of course not but it helps, no?

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    Entirely abolish the mortgage interest deduction. Fuck rural snowflakes and their giant McMansions.
    "Do not think that I came to bring peace... I did not come to bring peace, but a sword." - Matthew 10:34

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    Quote Originally Posted by cawacko View Post
    Negotiating chip or will Trump et al really push to reduce it?




    Popular mortgage deduction could get a haircut in tax reform



    The mortgage interest tax deduction has long been considered politically untouchable — until now, that is.

    The hands-down favorite of taxpayers is back on the negotiating table as tax reform kicks into high gear, according to industry sources, even though no one from the Trump administration has said that out loud, and Republican leaders in Congress say not to worry.

    "Saying they aren't going to get rid of it isn't saying they won't touch it," said one source who agreed to speak only on background. "There are clearly discussions going on around reducing the maximum of the mortgage interest deduction to the $600,000 range."

    The mortgage interest deduction, which only benefits about 20 percent of taxpayers, is currently capped at loans up to $1 million for married couples who file jointly and at $500,000 for individual filers. The median value of a U.S. home just crossed the $200,000 market, according to Zillow, so not a lot of people make it to that cap. More than half of those who benefit from the deduction have incomes above $100,000, and they get 81 percent of the benefit, according to the Congressional Joint Committee on Taxation. The benefit cost the U.S. government $77 billion in 2016.

    As recently as Monday, Senate Majority Leader Mitch McConnell said if you're worried about the mortgage interest deduction, "you can breathe easy." A rep in McConnell's office declined to elaborate.

    Capping the popular deduction at loans no higher than $500,000 would affect only 4 percent of borrowers but 15 percent of the dollar volume, since the deduction is so skewed toward higher income taxpayers. Still, the administration could use it as a bargaining chip to change the standard deduction.

    Altering the standard deduction so very few people will want to take it is "kind of an elegant way to water down, if not neuter, the mortgage interest deduction," said Guy Cecala, CEO of Inside Mortgage Finance. "If you're a taxpayer and your taxes go down by not taking the deduction, how can you say that's a bad thing?"

    No question, however, that the industry, especially the National Association of Realtors, will lobby hard against any changes. While there is no evidence that the deduction spurs home buying, it does make certain homes more affordable for some buyers.


    https://www.cnbc.com/2017/08/22/popu...ax-reform.html
    This would be a disastrous decision right now, especially if 1% gets tax cuts

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    Quote Originally Posted by Covfefe View Post
    This would be a disastrous decision right now, especially if 1% gets tax cuts
    Why? This benefits the rich and middle class at the expense of the poor. How do you (we) justify that? Especially since the discussion is about putting a cap on the amount which only affects the richest

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    Quote Originally Posted by aloysious View Post
    Of course not but it helps, no?
    No. It is a money loser

    Let's say you are in the 25% tax bracket. You are essentially paying $.75 in order to get $.25 back.

    Let me put it this way. If I tell you to give me $100 every month and I will give you $25, would you think that is a good deal?

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    Quote Originally Posted by cawacko View Post
    Why? This benefits the rich and middle class at the expense of the poor. How do you (we) justify that? Especially since the discussion is about putting a cap on the amount which only affects the richest
    Because she is really poor

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    Quote Originally Posted by archives View Post
    Ain't happening, middle class benefit, and the last thing any politician in this day in age is going to do is offend the mythological middle class, big part of Schedule A, especially for first time home buyers
    lol....cutting the annual mortgage interest deduction from $1M to $600K is NOT a middle class benefit......the annual mortgage interest on a $2M house, if totally financed is only around $60K

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    Quote Originally Posted by cawacko View Post
    Why? This benefits the rich and middle class at the expense of the poor. How do you (we) justify that? Especially since the discussion is about putting a cap on the amount which only affects the richest
    I'm just telling you it won't be good politically, I'm not going to argue fairness with you. Our tax code definitely needs to be changed, but taking mortgage deductions won't be met with cheers.

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    Quote Originally Posted by archives View Post
    Nah, I live in one of those blue States in the NorthEast, it is your Trump supporters who live in home with septic tanks
    I grew up in a home on 160 acres of land.......it had a septic tank.......is your studio apartment hooked up to city sewer?........

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    Quote Originally Posted by archives View Post
    First time home buyers live across the country, and it is a big part of their deductions, political kryptonite no matter where one lives

    What they ought to do is limit it to primary residency, it shouldn't apply to the guy who buys a camp or second residence
    the proposed cut will have no impact on 1st time home buyers.......unless of course that first home costs more than $20 million......

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    Quote Originally Posted by Covfefe View Post
    I'm just telling you it won't be good politically, I'm not going to argue fairness with you. Our tax code definitely needs to be changed, but taking mortgage deductions won't be met with cheers.
    Why would most Americans be upset that rich people can deduct less on their homes?

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    Quote Originally Posted by Covfefe View Post
    This would be a disastrous decision right now, especially if 1% gets tax cuts
    are you okay with 100% getting tax cuts?.......because when Bush cut taxes for 100% you still whined that they were tax cuts for the rich......

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