Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

James — Wed, 28 Mar 2007 11:00:00 GMT

Eddie really nailed it. Depending on your tax rate and how much your deduction is, it might only save you $2000 in your pocket. Granted that is a nice incentive to buy a house. However, saving that small amount of money at first can't be that great of incentive. It hardly pays closing costs or a heatpump that died.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

pope — Mon, 18 Dec 2006 13:00:00 GMT

Austrian School, what are you thinking?? These tax deductions are what makes it worth-while for most people to buy a home. If this proposal takes place, home values are going to drop considerably and will really put a strain on people close to retirement who plan on selling their home or getting some kind of reverse mortgage or home equity loan to help with their lifestyle during retirement. It sounds like you are a renter who can't afford to buy a house and wants others to suffer because of it.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Wayne — Wed, 15 Nov 2006 13:00:00 GMT

Cmon - if we take away the mortgage deduction and the property tax deduction - I could not afford my home. Period. When we bought the house - we depended on that deduction to make one of the mortgage payments. Sure - the total deduction is somewhere in the line of 30k.. But the govt. gets my money in so many other ways - I think they can give me some back to allow me and my family to live.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Jay — Tue, 01 Aug 2006 11:00:00 GMT

The home mortgage deduction is partially responsible for the inflation we've seen in residential housing. By getting rid of this deduction, you'd make houses more affordable. A second home is luxury, why are we subsidizing this? People are able to deduct the interest on effectively anything when they use a cash out refi to pay of other debt such as credit cards. What this policy really encourages is debt. Another example of the law of unintended consequences and social engineering.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Austrian School — Sat, 29 Jul 2006 11:00:00 GMT

Its funny how the same people that say the home mortgage tax deduction makes home owning more affordable, also say that if you got rid of the deduction, prices would plumet (AKA get more affordable). So which is it? The distortion to our economic system is only beginning to be understood. Cash out refi's effectively allow people to deduct not just their home mortage but any kind of debt, jet skis, hummers, vacations... Its really a policy that encourages debt and inflates prices.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Eddie — Thu, 27 Jul 2006 11:00:00 GMT

The point is that home ownership can and will still occur, but perhaps not at the same pricepoint. THAT is the key issue here for brokers and bankers alike. Less of your cash in their pockets!!

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Eddie — Thu, 27 Jul 2006 11:00:00 GMT

The itemization of mortgage interest and real estate taxes is a reduction in earned income to arrive at adjusted reportable income. The effect is that if the filer is in the 30% bracket and pays $12,000 real estate tax for example, the income is reduced by $12,000. This means that the filer saved $4,000 in taxes. I agree that is certainly a reduciton in tax due. But I will gladly give anyone $4,000 back for every $12,000 they give me ALL DAY LONG!!! Just send me an email to sign up!

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

FSBO — Fri, 21 Jul 2006 11:00:00 GMT

Most middle and lower income homeowners do not have a 2nd/vaction home, so this would HURT them. And considering that a min. 25% of Americans do not have a home, the real issues lie elsewhere - as in "programs" that require great/perfect credit to participate. This could be an issue for some investors, but only for those who purchase homes for tax incentives which is not how one should invest. Tax laws are always changing and should not be relied upon.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Gene — Sat, 15 Jul 2006 11:00:00 GMT

I forgot to mention how losing mortgage and local tax deductions would create a disincentive for people to own homes in good school districts. It would would also be a disencentive for homeowners to vote on tax appropriations to their school districts. The key to a successful economy and being able to compete in the global economy (therefore providing the tax revenues which reduce the deficit, that Bush is currently so pleased about!) is EDUCATION! Figure the rest out.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Gene — Sat, 15 Jul 2006 11:00:00 GMT

I guess since the Bush Administration sees a booming economy, it can afford to kill off the rest of the real estate industry,not to mention the vacation home market! Yes, there are ways to help middle and lower income homeowners and its not by killing off home values and the industry that goes with them.

RE:Study Measures Mortgage Interest and Real Estate Tax Deduction Benefits

Morgan — Fri, 14 Jul 2006 11:00:00 GMT

Another reason to be an increasingly cautious buyer.