Surprise, surprise: Mortgage Interest Deduction on the chopping block (solution, 2013, banks)

[riaelise]

Originally Posted by le roi

One where people pull their weight in taxes.



I am against the deduction in principle, but if it must exist, middle class and upper class people shouldn't get it.

I pull my weight in taxes and my mortgage is over 100K. What's the problem with that?

Why shouldn't middle and upper class people receive the deducation? Only lower income deserve all of the breaks?

[HappyTexan]

Originally Posted by riaelise

I pull my weight in taxes and my mortgage is over 100K. What's the problem with that?

Why shouldn't middle and upper class people receive the deducation? Only lower income deserve all of the breaks?

See how this "tax the rich" is trickling down ?

Mortgage deduction is solid middle class and Congress threw it on the table for debate.

[hamellr]

Originally Posted by Winter_Sucks

We should trim deductions and tax breaks. We should also cap deductions and tax breaks at $30,000. We can keep the same tax rates and get more revenue.

Especially for businesses and large corporations.

[NJBest]

Originally Posted by hamellr

Especially for businesses and large corporations.

Businesses should certainly be included. Ending mortgage interest deductions and child tax credits should just be the tip of the iceberg.

[workingclasshero]

end all deductions/exemptions/credits

set the federal rate at 60%...mandate all state rates be 30%...and the peons can keep their 10%

hiel government

[le roi]

Originally Posted by riaelise

I pull my weight in taxes

i can't verify that.

Why shouldn't middle and upper class people receive the deducation?

the fewer people that get the deduction, the less the market is distorted, and the more revenue is generated for government operations.

Only lower income deserve all of the breaks?

no, it's not about deserving anything, it's just cheaper to limit it to lower income people. Their mortgages and incomes are smaller.

[le roi]

Originally Posted by NJBest

Businesses should certainly be included. Ending mortgage interest deductions and child tax credits should just be the tip of the iceberg.

i strongly agree. there are hidden costs to all these deductions that distort the free market.

[Ultrarunner]

Originally Posted by aus10

Come on... how many multi-millionaires pay "mortgage interest"? Do they honestly go borrow more millions and make a monthly payment to a lender?

I should have said non-homeowners OR the entitlement group.. neither of which pay mortgage interest..

Jeez... somebody get up on the wrong side of the bed this morning or what?

In the event this is a real question...

Mark Zuckerberg, Facebook Billionaire, recently took out a 6 million dollar mortgage

Mark Zuckerberg's mortgage rate 1.05% - SFGate

[Ultrarunner]

Originally Posted by le roi

Nope. Rents are determined by the market, not by the mortgage interest deduction.

You must think that landlords don't make a profit, and just rent out their properties at cost.

In the absence of rent control, rents are determined by the market.

If market rents do not provide a competitive return... the supply of rentals will diminish.

[Ultrarunner]

Originally Posted by freemkt

I'm a poor person and would like to invest in real estate for rental purposes. How can I do that?

I am SO tired of buying houses for my landlords. Shouldn't I be able to buy a house for me???

One way is to partner with someone...

I did with my two younger brothers... we were all in school and the youngest was still in High School

A good partnership is when everyone contributes... one might be financial, another maintenance and another management...

To get a jump start... look at rentals in 1 to 4 unit property...

The reason is these can still be considered owner occupied as long as one person on title lives there.

So yes... you should be able to own property if owning is your goal.

I've seen partner arrangement many times... might be a couple of partners then they divest and eventually each partner may not need the others...

My CPA has put together many real estate partnerships... I've always gone my own way... just saying there are plenty of options to reach your goal.

Plus I do know people that did the rent to own... it has worked for some... but, my advice is to have a lawyer involved if you go that route.