Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
With this move - and with its insistence on increasing military spending - the GOP is now assured of winning the election. I'm sure the middle class who look forward to getting tax refunds for having mortgages while they send their kids off to fight and die in foreign lands will be so thrilled to vote Republican.
Homeowners were helped by the actions of state and local governments to build protectionist barriers to the creation of an adequate supply of affordable rental housing (exclusionary zoning, NIMBY, excessive rental regulation from which homeowners are exempt)
Homeowners were helped by the actions of half the states, which gave homeowners preferential tax rates, rebates, freezes, and caps...not available to owners and occupants of rental property.
The scales are still weighed heavily in favor of homeowners by government.
Not to mention the latest bailout programs for homeowners.
Homeowners as a group did not get bailed out, did not get preferential tax rates, rebates, freezes, and caps as you claim. Only some mortgagees. See the difference?
Not everyone who owns a home sold themselves into debt (a.k.a. mortgaged) in order to purchase a home. Some people actually save and save and are mortgage free homeowners.
The "mortgage interest deduction" that homeowners (owner-occupants) enjoy and the "mortgage interest deduction" that landlords enjoy are two different things which have NOTHING to do with each other.
If the MID for homeowners disappeared, this would not negatively affect landlords. Indeed, landlords would probably become better off because they would enjoy reduced competition from "homeowners". and would be able to buy houses at lower prices than they are paying now.
Landlords will always be able to "deduct" their mortgage interest costs (plus their property taxes, maintenance, etc) on rental property as a legitimate business operating expense.
My bad, true as it is a business expense. It is to my understanding (and I could be wrong) but it is to my understanding that as you go up the income ladder you can not write off losses so they buy well.
Now for the different income ladders, poor and middle class people don't benefit from the mortgage deduction if they don't have enough write offs anyway. The upper income do benefit from buying houses with bigger mortgages with a higher amount to write off.
Either way, I do believe that anytime you hit people in the upper income range (businesses / 250K), those who are trying to make a better life for themselves or invest for income and you hit the rich then the middle class pay the price. The poor, well they just keep on taking at everyones expense.
Homeowners as a group did not get bailed out, did not get preferential tax rates, rebates, freezes, and caps as you claim. Only some mortgagees. See the difference?
Not everyone who owns a home sold themselves into debt (a.k.a. mortgaged) in order to purchase a home. Some people actually save and save and are mortgage free homeowners.
noun Economics . a taxation under which real-estate taxes on business and industrial buildings are levied at higher rates than on residential homes.
Many states have "split roll" property tax systems which give homeowners preferential tax rates much lower than the rates landlords and non-residential property owners pay. (The preferential rates are for owner-occupants, second homes in some states do not enjoy the preferential tax rate.) States with split roll property taxes historically have been mostly in the South, but a growing number of non-Southern states have adopted them in recent years, as greedy governments seek ways to collect more revenue.
For example, in Michigan, the school property tax rate on rental property is 4 times the rate on owner-occupied homes. The house in which I lived for many years had $1,200 extra property tax per year, in the form of a "nonhomestead tax" because it was a rental. This tax was created by Republicans who wanted to reduce property taxes for homeowners because elderly voters in retirement destination towns (which line I-75 in northern Michigan) were rejecting school millages, notably in Kalkaska, where voters repeatedly rejected millages and the school year ended prematurely for lack of funds.
As a millage, the nonhomestead tax must be voted and renewed by voters periodically, and enjoys overwhelming support from homeowners who literally get to vote themselves free money because their homes are exempt from the tax.
Many states, driven by pressure from voters (and often initiative ballot measures), have enacted property tax caps which limit the maximun annual increase in assessments or taxable value of homes. (Michigan caps annual increases in "taxable value" to 5 percent, and then (like California's Prop 13) adjusts taxable value to full value when a home is sold.) A Michigan study published in 2000 estimated that nonhomestead property had about 20 percent more taxable value than equivalent homestead property, because these properties on average are sold (thus lifting the cap on taxable value) more often than homestead property.
Some states freeze, defer, or exempt elderly/poor/disabled/veteran homeowners from property taxes. As I recall, elderly homeowners in Texas enjoy a very sweet deal.
A number of states have "circuit breaker" rebates for homeowners who are considered to have an "excess" property tax burden, usually defined as property taxes greater than a certain percentage of their income. (A few states also extend rebates to renters based on a one-size-fits-all formula which considers a specified percentage of rent paid to constitute property taxes.)
36,362,426 / 46,703,000 * 100 = 77.8% of those with mortgages took the Mortgage Interest Deduction.
I believe you were spouting some disinformation about the applicability of the Mortgage Deduction and how dreadful the itemized deductions were and the horrors that investors and multi-property owners will face.
You stand corrected.
My pleasure....
Mircea
From Atlantic to Pacific
The deductions are terrific
Oh there's no place like home
For a big tax break...
A lot of economists, landlords, and rent slaves will tell you that's not true.
They will tell you that landlords charge what the market will bear, regardless of how high or low their costs are.
A number of states have enacted large property tax cuts (e.g. California's Prop 13 cut prop taxes an average 57 percent) but rents went up and not down.
Economists will also tell you that rents are "sticky" especially in the downward direction.
When Prop 13 became law about 35 years ago... both my teacher and my Uncle had immediate rent reductions...
Predictability in Prop taxes is a definite factor in foregoing rent increases with the rentals I manage.
It is company policy to keep rent increases to a minimum for good tenants and raise them to market at turnover...
Some of my tenants have not had increases in 7 years...
The stability Prop 13 offers is definitely a factor.
Nice to have happy tenants who've lived there 7 years or more and intend on staying.
Yes and it is good for business... it is a common mistake to underestimate the cost to make ready and turn over a unit and there is always the chance a new tenant might not work out.
With this move - and with its insistence on increasing military spending - the GOP is now assured of winning the election. I'm sure the middle class who look forward to getting tax refunds for having mortgages while they send their kids off to fight and die in foreign lands will be so thrilled to vote Republican.
Anyone who isn't a millionaire who votes Republican just isn't voting in their rational self interest. So much for Ayn Rand's theory.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
