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Except 1/2 of homeowners gain nothing because they can't clear the standard deduction.
They have to remember to that deduction they are figuring grows less and less each yearas the mortgage gets paid down and the mortgage payment more and more are your costs.
It is always better to figure things without the deductions. Trip the amt tax and real estate tax deductions are out.
Yes.
Of the 13 years we've owned a home, we've benefited maybe 3 years. The whiners on this board think homeowners just get buckets of cash back in April. NOT.
I would prefer that the mortgage interest deduction be phased out rather than trying to equalize things with a renter deduction (even though I would benefit from it). I fundamentally disagree with the MID, but it doesn't mean adding another deduction is the right path. I would prefer that they keep things simple, so that the conversation is merely about overall tax rates, not who gets special deductions.
Quote:
Originally Posted by SportyandMisty
I have to disagree with you.
The intent of the bill is to PURCHASE VOTES and SOLICIT CAMPAIGN CONTRIBUTIONS. The bill has zero chance of becoming law, but will be used to generate campaign contributions and will be used as fodder leading up to the election. "Vote for ME; I am fighting for renters!"
The author of the bill is from Florida's 9th congressional district. That district, after the redistricting a few years ago, is now over 45% Hispanic, few college graduates, and with a median income of $41,564. Sounds to me like a demographic that would appreciate the bill.
Agreed, just like they pander to current homeowners with the Mortgage Interest Deduction. Another reason to not enact another deduction, and eliminate the current MID.
Except 1/2 of homeowners gain nothing because they can't clear the standard deduction.
They have to remember to that deduction they are figuring grows less and less each yearas the mortgage gets paid down and the mortgage payment more and more are your costs.
It is always better to figure things without the deductions. Trip the amt tax and real estate tax deductions are out.
Is it really that high? State taxes alone for me are higher than the standard deduction, given CA is a higher tax state. I'm not real high income, 30% percentile maybe for household income. Given a lot of households are either HH or married rather than single but still. I mean I don't donate a whole lot compared with a religious household who tithed. No idea how many of them really tithe so maybe 3-5% I tend to donate is actually more.
There is zero chance a year's entire rent payment will be fully deductible in any legislation that has a rat's ass chance of passing.
When I lived and rented in Mass., we had a small deduction/allowance IIRC that really just added a few $$ to my state refund...but I suspect it was intended to cross-check the landlord's taxes to see if they reported rental income.
Well, I agree but that's what the article was talking about. $18,000 in rent, 25% marginal tax bracket, $4,500 deduction on their taxes. I agree it would never pass but that's what it was talking about.
Well, I agree but that's what the article was talking about. $18,000 in rent, 25% marginal tax bracket, $4,500 deduction on their taxes. I agree it would never pass but that's what it was talking about.
Yeah, I saw that...I was just commenting how many of the commenters here seemed to think the whole rent payment would be deductible and/or that owners somehow deduct all PITI from their income.
Is it really that high? State taxes alone for me are higher than the standard deduction, given CA is a higher tax state. I'm not real high income, 30% percentile maybe for household income. Given a lot of households are either HH or married rather than single but still. I mean I don't donate a whole lot compared with a religious household who tithed. No idea how many of them really tithe so maybe 3-5% I tend to donate is actually more.
yes it is very high . the reason is being able to itemize increases with income and until you get in to the higher incomes not many itemize . those income levels are much higher then the average homeowners income .
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