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Supposedly, the government encourages you to buy a home by making your mortgage interest tax deductible, but if you look at it carefully, you are required to (a) Take out a mortgage and (b) Pay an interest to a bank to see the tax-advantage of homeownership. So, I propose that this part of the tax code was written by the banking lobby. We all know where they have taken the country in the last few months with their creative mortgages. Effectively, you are renting your home from a bank if you take out a mortgage and pay an interest on it. If you fully own your home, you don't get a tax advantage.
It is expected that with the subprime crisis in full swing, many more people will loose their homes and start renting. These families are already struggling with the heavily inflated cost of living. Does it then make sense to encourage people to stay in a home, by making their monthly rents tax deductible? Should we start writing to the useless neighborhood congressman?
Supposedly, the government encourages you to buy a home by making your mortgage interest tax deductible, but if you look at it carefully, you are required to (a) Take out a mortgage and (b) Pay an interest to a bank to see the tax-advantage of homeownership. So, I propose that this part of the tax code was written by the banking lobby. We all know where they have taken the country in the last few months with their creative mortgages. Effectively, you are renting your home from a bank if you take out a mortgage and pay an interest on it. If you fully own your home, you don't get a tax advantage.
It is expected that with the subprime crisis in full swing, many more people will loose their homes and start renting. These families are already struggling with the heavily inflated cost of living. Does it then make sense to encourage people to stay in a home, by making their monthly rents tax deductible? Should we start writing to the useless neighborhood congressman?
Comments? Suggestions?
Actually I would take it the other way by removing tax deductions for homes. After all everyone needs a place to live, home owners get to appreciate the value and profit, often times gain from rental income etc.
Who I suspect wrote this part of code were huge real estate investors and I'm surprised that more people arent yelling and screaming about these people getting rich on the backs of the poor because they arent paying their "fair" share of taxes.
As for writing off the rent, the reason that wont work is the property owner is already writing off the property.
I'm sorry, why do you want to make rent payments tax deductible?
I don't think there is an incentive to stay in one place if the rent payments at any place are going to be tax deductible.
Why do you want to provide an incentive for staying in one place? If you are stuck in a dead-end job in a dead-end city and can make a contribution to the economy by moving to another city, should you be discouraged?
The proverbial young man would have never gone west if he had to put his home on the market in these times!
Supposedly, the government encourages you to buy a home by making your mortgage interest tax deductible, but if you look at it carefully, you are required to (a) Take out a mortgage and (b) Pay an interest to a bank to see the tax-advantage of homeownership. So, I propose that this part of the tax code was written by the banking lobby. We all know where they have taken the country in the last few months with their creative mortgages. Effectively, you are renting your home from a bank if you take out a mortgage and pay an interest on it. If you fully own your home, you don't get a tax advantage.
It is expected that with the subprime crisis in full swing, many more people will loose their homes and start renting. These families are already struggling with the heavily inflated cost of living. Does it then make sense to encourage people to stay in a home, by making their monthly rents tax deductible? Should we start writing to the useless neighborhood congressman?
Comments? Suggestions?
The New York Times wrote an excellent article on this subject in March 2006.
Supposedly, the government encourages you to buy a home by making your mortgage interest tax deductible, but if you look at it carefully, you are required to (a) Take out a mortgage and (b) Pay an interest to a bank to see the tax-advantage of homeownership. So, I propose that this part of the tax code was written by the banking lobby. We all know where they have taken the country in the last few months with their creative mortgages. Effectively, you are renting your home from a bank if you take out a mortgage and pay an interest on it. If you fully own your home, you don't get a tax advantage.
It is expected that with the subprime crisis in full swing, many more people will loose their homes and start renting. These families are already struggling with the heavily inflated cost of living. Does it then make sense to encourage people to stay in a home, by making their monthly rents tax deductible? Should we start writing to the useless neighborhood congressman?
Comments? Suggestions?
I'm reading that you think this is something new. It's been around from the first house I ever bought.
And no, you are NOT renting your home from a bank, they loaned you the money so someday you can OWN your home.
If the value of that home goes up that's your money not the banks.
If I rent you a house why should you get to deduct it on your taxes? I'm the one taking the risk by renting to you.
What is the purpose of a tax deduction for interest - you took it upon yourself to pay interest on a loan when you bought a house. Seems only fair that you pay the interest out of your own pocket rather than expecting a check for the amount with each new year.
In the end, it's like the government is subsidizing part of your mortgage to the bank because of a decision you made.
What is the purpose of a tax deduction for interest - you took it upon yourself to pay interest on a loan when you bought a house. Seems only fair that you pay the interest out of your own pocket rather than expecting a check for the amount with each new year.
In the end, it's like the government is subsidizing part of your mortgage to the bank because of a decision you made.
If it's right or wrong is not up to me or you, but if you don't like the law it's your right to try to get it changed. Do have something against the average Joe getting a tax break? We all know the rich Joe gets plenty. You could donate the money you save very year to a homeless charity if you if really bothers you that much.
And do you have children? Do you list them on your tax return ? If so doesn't that mean that the government is subsidizing your having childern? But I'm sure you will find a difference there . OK for one but not the other.
If it's right or wrong is not up to me or you, but if you don't like the law it's your right to try to get it changed. Do have something against the average Joe getting a tax break? We all know the rich Joe gets plenty. You could donate the money you save very year to a homeless charity if you if really bothers you that much.
And do you have children? Do you list them on your tax return ? If so doesn't that mean that the government is subsidizing your having childern? But I'm sure you will find a difference there . OK for one but not the other.
I actually donate my time to a daycare for those in poverty. And in a way, I do donate to the homeless when I take bags of stuff over to the Salvation Army - or when I shop there.
Yes, I have a child. I will not be claiming her when I file my taxes. I've actually been against tax breaks for having children and increased tax breaks for having even more children. The government already pays for education costs, so why should I pay less in taxes?
I've been personally against most tax breaks. Flat tax everyone's income (from any source) and get rid of tax breaks - that includes the interest from buying a house.
I actually donate my time to a daycare for those in poverty. And in a way, I do donate to the homeless when I take bags of stuff over to the Salvation Army - or when I shop there.
Yes, I have a child. I will not be claiming her when I file my taxes. I've actually been against tax breaks for having children and increased tax breaks for having even more children. The government already pays for education costs, so why should I pay less in taxes?
I've been personally against most tax breaks. Flat tax everyone's income (from any source) and get rid of tax breaks - that includes the interest from buying a house.
You're not claiming your kid on your tax return?
What the heck did you have her for?
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