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It states rent paying, and that it is your primary residence, and that you can't deduct for qualified residence interest, your corp owns the property and files the deduction for interest on debt (the mortgage).
A corp can deduct interest on debt, if it is a debtor for the mortgage (and why wouldn't it be?). You'd probably be liable for unpaid liabilities if the corporation failed to pay the mortgage, but if you held the mortgage you'd be liable anyway.
You deduct rent (under the bill provisions).
You own the corp.
It's all your property, and your money, and you can own a home, pay "rent", receive a tax break on your mortgage interest, and your rent. You just have to apparently bucket what specifically owns what.
You could do the same with your spouse and file separately, they own the house, they have the mortgage, you pay rent to them of the value of the mortgage payment. They deduct the mortgage interest from their return, you deduct rent from yours, would work best if the lower income party is the owner/mortgage holder, and the higher income party is paying rent.
Awesome, it appears you have found a loophole for homeowners to take advantage if it is signed into law. But it does depends on a few things - for one, the market rent has to be higher than the mortgage interest for this manuver to make sense, and the participant has to be savvy enough to know this.
But I'm fine some people gaming the system for something that can benefits the greater population.
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Are you kidding? Anyone who is renting a house/condo with an accessed value less than $1 million would benefit. If you are renting a house, and that house is assessed by the city as being worth $600,000, your rent would be deductible. It's that simple.
ALL of the rent? Wouldn't that mean ALL of a homeowner's mortgage payments should also be dedudctible?
Rent the home from the Corp. at mortgage monthly payment, less tax deductible.
Your trust gets a tax break on the mortgage it's now paying (thus being able to cover mortgage costs).
You get a tax break on the rent that you're paying.
Trust has zero income, thus pays zero taxes. You own the Corp. thus indirectly own all it's assets, including the house you're renting from the Corp. You can use the Corp as security (being the owner).
ALL of the rent? Wouldn't that mean ALL of a homeowner's mortgage payments should also be dedudctible?
Rent and mortgage are two different things. Your mortgage payment includes principals that wouldn't make sense as a deduction because you're basically just paying back money you borrowed.
But Rent is rent, all of the rent is being paid to someone else, so all of it should be deductible.
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Rent and mortgage are two different things. Your mortgage payment includes principals that wouldn't make sense as a deduction because you're basically just paying back money you borrowed.
And, what do you think rent is? It's paying for a living space you borrowed.
Complete and utter complicated nonsense. What needs to happen is a gradual step down of the mortgage interest deduction, offset by an stepping up of the personal exemption. Renter, home owner; 100% LTV mortgage, or home owned outright; own a mansion, or shack; everyone should benefit the same.
Ohh right, none. There is no tax for them to get a break from.
And yes, we need a flat tax and an end all deductions. Fairness and equality for all.
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