Trump administration weighs slashing mortgage deduction

A tax break popular with homeowners and the real estate industry could take a hit as Republicans look for ways to pay for their tax reform plan.

Despite promises from the Trump administration in April that it would “protect the homeownership … deductions,” multiple sources tracking tax reform said that the cap on the mortgage interest deduction — currently set at the interest on up to $1 million of mortgage debt — could be lowered in tax reform.

http://www.politico.com/story/2017/0...benefit-241328

Glad my house is paid for.

One million in interest is alot

Is like he wants to bleed out his own base of support.

He'll be at Bush's approval levels in a a few months.

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Originally Posted by Reck

Is like he wants to bleed out his own base of support.

He'll be at Bush's approval levels in a a few months.

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Did you even read the article?

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Originally Posted by ducks

One million in interest is alot

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:bang

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Originally Posted by Reck

Is like he wants to bleed out his own base of support.

He'll be at Bush's approval levels in a a few months.

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wait, Bush's was ever this bad?

Bush is actually a pretty good Democrat by today's standards. His policies are pretty similar to HRC's, honestly. And it's not just foreign policy. "No Child Left Behind" is a total Hillary policy, tbh.

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Originally Posted by UNT Eagles 2016

wait, Bush's was ever this bad?

Bush is actually a pretty good Democrat by today's standards. His policies are pretty similar to HRC's, honestly. And it's not just foreign policy. "No Child Left Behind" is a total Hillary policy, tbh.

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Yeah let's pretend Clinton wasn't in step with teacher's unions and against national standards or that the shitbird Alexander who wrote/sponsored the bill isn't still in the House.

GOPOTARDS are a special brand of delusional.

The difference between what Reagan and the Bushes did as opposed to the modern GOP of McConnell, Ryan, and Bozo the President is that when the former would do supply side tax cuts they would cut everyone in whereas today's version doesn't cut you in unless you make a quarter million a year.

I'll just bet he's weighing.

I thought most of you liberals were for sticking it to the rich - this cap down to $500 would do that. Doubling the standard deduction would help the little man too - especially if they don't own a home.

500k

Whatever caps are used should be increased by say average % increase of home prices from previous year so inflation doesn't eat away at it.

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Originally Posted by ducks

One million in interest is alot

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* cue double take*

How does a duck know, which direction South is?
Or how to tell his wife, from all the other ducks?
Hmmm?

You can cut a chicken's head off
And it will keep on movin
And twitchin...

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Originally Posted by rmt

Whatever caps are used should be increased by say average % increase of home prices from previous year so inflation doesn't eat away at it.

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Oh here we go again.
Complicating the tax code.
Flat tax, no credits, no deductions.
Simples...

Who ever knew the economy could be so complex...

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Originally Posted by pgardn

Oh here we go again.
Complicating the tax code.
Flat tax, no credits, no deductions.
Simples...

Who ever knew the economy could be so complex...

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Not a hill I'm willing to die on - I won't care in a few years - not that I'd ever be borrowing that amount of money. And a flat tax would suit me just fine - but that wouldn't be fair to low-income people, right?

500k is still a LOT of interest to deduct, you're talking about owning at least 3-4 large apartment complexes or over 20 sfhomes.

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Originally Posted by rmt

flat tax would suit me just fine - but that wouldn't be fair to low-income people, right?

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no, flat tax so beloved by the 1%, or 5%, is inhumanely regressive, which is why they love it.

We got ours, we want much more, and we and our greedy geens are gonna fuck the poor to sickness and death.

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Originally Posted by UNT Eagles 2016

500k is still a LOT of interest to deduct, you're talking about owning at least 3-4 large apartment complexes or over 20 sfhomes.

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Its not 500k of interest. Its interest on a 500k mortgage.you can buy a pretty decent home in san antonio for 500k, but that wont buy shit in LA or san francisco or new york.

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Originally Posted by rmt

Not a hill I'm willing to die on - I won't care in a few years - not that I'd ever be borrowing that amount of money. And a flat tax would suit me just fine - but that wouldn't be fair to low-income people, right?

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But you care now?

Why do you care now?

Im assuming it wouldnt apply to rental homes as mortgage interest is just another business expense.

It would definitely slow illegal immigration because it would kill new home construction and most are built by illegals.

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Originally Posted by CosmicCowboy

Its not 500k of interest. Its interest on a 500k mortgage.you can buy a pretty decent home in san antonio for 500k, but that wont buy shit in LA or san francisco or new york.

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well you'll still be able to deduct some, up to the certain cap amount

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Originally Posted by CosmicCowboy

Im assuming it wouldnt apply to rental homes as mortgage interest is just another business expense.

It would definitely slow illegal immigration because it would kill new home construction and most are built by illegals.

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That's what I'm hoping. As long as the mortgage interest is always still considered a business expense.

Really if you're going to buy a home to live in for that much, just buy it with cash.

Personally i have no problem borrowing money to buy houses, at least in tbe sa market. When you can pay 3.25% on an asset that increases in value 5% a year the math works just fine for me.

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Originally Posted by pgardn

But you care now?

Why do you care now?

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I deduct mortgage interest now. My house will be paid off then. It doesn't matter much to me as I'm at the end of my loan (not much interest now). But increasing the standard deduction in favor of the mortgage deduction evens it out for those who don't own a home (rent).

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Originally Posted by rmt

I deduct mortgage interest now. My house will be paid off then. It doesn't matter much to me as I'm at the end of my loan (not much interest now). But increasing the standard deduction in favor of the mortgage deduction evens it out for those who don't own a home (rent).

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Ahhh based on YOUR situation.

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Originally Posted by CosmicCowboy

Personally i have no problem borrowing money to buy houses, at least in tbe sa market. When you can pay 3.25% on an asset that increases in value 5% a year the math works just fine for me.

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Buying a house does not work like a government bond.
No one guarantees you 5% every year.

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Originally Posted by UNT Eagles 2016

That's what I'm hoping. As long as the mortgage interest is always still considered a business expense.

Really if you're going to buy a home to live in for that much, just buy it with cash.

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Why tie up so much money in a home? Interest rates are still low - put down 20%, take out a 30-yr fixed and invest the rest. As long as you don't turn around and sell in a downturn, you'll be okay. Home prices generally go up. Your 20% is leveraged (increase is on value of asset) and most don't pay taxes if they downsize later on or pass on to kids.

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Originally Posted by pgardn

Ahhh based on YOUR situation.

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You did ask about ME. And the last bit is not about me - but all those who rent since home ownership is very low.

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Originally Posted by rmt

You did ask about ME. And the last bit is not about me - but all those who rent since home ownership is very low.

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Well you can't answer for Avante so yes.
So apartment dwellers as well...

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Originally Posted by rmt

Why tie up so much money in a home? Interest rates are still low - put down 20%, take out a 30-yr fixed and invest the rest. As long as you don't turn around and sell in a downturn, you'll be okay. Home prices generally go up. Your 20% is leveraged (increase is on value of asset) and most don't pay taxes if they downsize later on or pass on to kids.

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You don't pay taxes at all (except property taxes) on a resale for a higher amount if you've lived in it for 2 years. Or if you're a military vet with an honorable discharge.

Also, why put down 20% in a house you're going to live in? Having to pay $600 a year in private mortgage insurance is nothing compared to losing all that cash on hand. Cash on hand and cash flow are more important than real equity... you can't liquidate your equity for a fair price in an economic downturn, for instance.

Plus, PMI along with mortgage insurance and property taxes, are tax deductible. Principal and homeowners insurance is not.

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Originally Posted by UNT Eagles 2016

You don't pay taxes at all (except property taxes) on a resale for a higher amount if you've lived in it for 2 years. Or if you're a military vet with an honorable discharge.

Also, why put down 20% in a house you're going to live in? Having to pay $600 a year in private mortgage insurance is nothing compared to losing all that cash on hand. Cash on hand and cash flow are more important than real equity... you can't liquidate your equity for a fair price in an economic downturn, for instance.

Plus, PMI along with mortgage insurance and property taxes, are tax deductible. Principal and homeowners insurance is not.

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Well, if you want to be technical, pay down 23% (iirc) and you don't need PMI. Of course, if you sell anything in a downturn, you're gonna lose.

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Originally Posted by rmt

Well, if you want to be technical, pay down 23% (iirc) and you don't need PMI. Of course, if you sell anything in a downturn, you're gonna lose.

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It's 20 percent for no PMI, at least that's what my lender/realtor said last year

In a downturn you rent-out and be a landlord for a couple years and wait to bounce back. Rents usually hold pretty steady during downturns unlike home prices. Rent usually goes hand in hand with property taxes which don't usually go down much at all even in recessions, as they have more to do with things like school quality, urban sprawl of the area, etc.

Only time rents go down significantly is when something unforeseen happens like, major structures in the area are destroyed by fire/weather, a nuclear plant explodes in the vicinity Chernobyl style, or a power plant/toxic waste plant is built nearby. NIMBY stuff, but you don't see that a lot anymore.

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Originally Posted by CosmicCowboy

Im assuming it wouldnt apply to rental homes as mortgage interest is just another business expense.

It would definitely slow illegal immigration because it would kill new home construction and most are built by illegals.

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Isn't E-verify going on nationwide?

Right now to work in a refinery, you have to pass a pretty thorough background check. About 10 years ago, most of the heavy duty jobs there were filled by illegals

cowboy spreading knowledge.

he knows his market.

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Originally Posted by rmt

I thought most of you liberals were for sticking it to the rich - this cap down to $500 would do that. Doubling the standard deduction would help the little man too - especially if they don't own a home.

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It's not sticking it to the rich if you do that and then lower the top rates to more than offset any potential lost breaks.