mortgage interest deduction...

[CosmicCowboy]

do you really think they will ever change it? if they do, do you think they will grandfather existing loans? im really thinking about going all in...i found a house i really like thats right at a million...note would be like 4 grand a month but almost all deductible interest at first and im getting killed on taxes. might as well spend it and enjoy it. and yeah i know im not using caps but im watching the bowl game with the surface on my chest and typing with one hand.

[SnakeBoy]

No they won't ever get rid of that deduction... it would be political suicide.

[baseline bum]

No they won't ever get rid of that deduction... it would be political suicide.

It could be doable to get rid of it for second homes and beyond if the Dems take back the House and Senate and Clinton gets elected. So unlikely but not "get struck by lighting" levels of improbability.

[boutons_deux]

They could cap it for first homes, deduction for interest on the first $x00K, and eliminate it for 2nd, etc homes.

but the finance industry will block anything that reduces their interest income.

[TDMVPDPOY]

first home how can u claim interest as deductions?

i thought interest deductions is only allowed on investment properties...i guess its different tax laws in america then

[CosmicCowboy]

first home how can u claim interest as deductions?

i thought interest deductions is only allowed on investment properties...i guess its different tax laws in america then

Yeah, i'm currently deducting the taxes and interest on two houses...

[CosmicCowboy]

It could be doable to get rid of it for second homes and beyond if the Dems take back the House and Senate and Clinton gets elected. So unlikely but not "get struck by lighting" levels of improbability.

I would actually consider it to be more improbable if Clinton gets elected. The only ones I have heard making noise about modifying or eliminating the mortgage deduction are mid tier Republicans...you know..."balancing the budget".

[boutons_deux]

BigFinance owns enough Repugs and Dems to block reducing the bankers' subsidy/wealth-transfer of mortgage deductions.

[RandomGuy]

do you really think they will ever change it? if they do, do you think they will grandfather existing loans? im really thinking about going all in...i found a house i really like thats right at a million...note would be like 4 grand a month but almost all deductible interest at first and im getting killed on taxes. might as well spend it and enjoy it. and yeah i know im not using caps but im watching the bowl game with the surface on my chest and typing with one hand.

No. Too many entrenched interests backing that one. That is the third rail of tax policy at this point.

Might as well ask if they will abolish Social Security. :D

[RandomGuy]

No they won't ever get rid of that deduction... it would be political suicide.


BigFinance owns enough Repugs and Dems to block reducing the bankers' subsidy/wealth-transfer of mortgage deductions.

When Snakeboy and boutons agree on something... (looks around for dogs and cats living together)

[CosmicCowboy]

No. Too many entrenched interests backing that one. That is the third rail of tax policy at this point.

Might as well ask if they will abolish Social Security. :D

An argument can certainly be made that although it is horrible tax policy the ramifications of killing it would be even worse. Typically the biggest investment of a middle class family is their home...and they would wipe out or at least severely devalue the value of that investment overnight if they did away with the mortgage deduction...

[boutons_deux]

An argument can certainly be made that although it is horrible tax policy the ramifications of killing it would be even worse. Typically the biggest investment of a
middle class family is their home...and they would wipe out or at least severely devalue the value of that investment overnight if they did away with the mortgage deduction...

if m/d EVER got touched, it wouldn't be retroactive. would be only for new mortgages.

with capitalists buying up homes to rent them for the cash flow (more profitable than mortgage interest income?), home ownership is declining, rents are going up.

"If Fannie Mae and Freddie Mac die that would take two of the biggest buyers of 30-year mortgages out of the equation. Of course banks would be willing to step in to buy offer more mortgages, just at a significantly lower term."

http://www.shanewillis.com/blog/will-the-30-year-mortgage-die-with-fannie-mae-and-freddie-mac-pensacola-real-estate/

mortgages getting shorter, car loans getting longer, up to 7 years.

[CosmicCowboy]

if m/d EVER got touched, it wouldn't be retroactive. would be only for new mortgages.

with capitalists buying up homes to rent them for the cash flow (more profitable than mortgage interest income?), home ownership is declining, rents are going up.

"If Fannie Mae and Freddie Mac die that would take two of the biggest buyers of 30-year mortgages out of the equation. Of course banks would be willing to step in to buy offer more mortgages, just at a significantly lower term."

http://www.shanewillis.com/blog/will-the-30-year-mortgage-die-with-fannie-mae-and-freddie-mac-pensacola-real-estate/

mortgages getting shorter, car loans getting longer, up to 7 years.




That would still crash real estate values because fewer people could qualify.

[boutons_deux]

That would still crash real estate values because fewer people could qualify.

Unsusidized mortgages would hurt new home construction, pushing up prices for existing homes, and pushing people into renting appts and homes.

[SnakeBoy]

An argument can certainly be made that although it is horrible tax policy the ramifications of killing it would be even worse. Typically the biggest investment of a middle class family is their home...and they would wipe out or at least severely devalue the value of that investment overnight if they did away with the mortgage deduction...

Getting rid of the mortgage deduction but keeping all of the other deductions would be terrible. Lowering tax rates and getting rid of all deductions like some of the GOP candidates are proposing would be a good thing imo. Of course that is just campaign talk, never going to happen.

[SnakeBoy]

Hey CC aren't you up around 60 yrs old or something? If so, I'd say go for it.

We're in our 40's still so we are just saving/investing and not taking on any debt. When we get older we will start using smart debt to our advantage...can't take it with you.

[CosmicCowboy]

Hey CC aren't you up around 60 yrs old or something? If so, I'd say go for it.

We're in our 40's still so we are just saving/investing and not taking on any debt. When we get older we will start using smart debt to our advantage...can't take it with you.

Yeah, i turned 60 this year but plan to work well into my 70's health permitting. I'm probably going to be better off hiring a full time manager for my business on salary/incentive as opposed to selling the business. It sucks that people don't think twice about buying a stock with a P/E of 20 but only want to pay like 4/1 for a small highly successful business. I've never been afraid of debt both business and personal...obviously the goal is always to be debt free but then again when you can make more money with borrowed money it's hard to turn it down. My goal is to work 20 hours a week in my 70's and still clear (inflation adjusted) 300K a year.