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abelenkpe

(9,933 posts)

13. You'd think that wouldn't you?

Thu Nov 29, 2012, 10:00 PM

Nov 2012

But I know many people, neighbors, co-workers who bought homes around 600,000 on salaries of 70,000 - 90,000 a year. Bubble mania was great here in southern California.

Still know people who got FHA loans for homes that cost around 650,000 with small downpayments. they have steady jobs and service their loans but they are house poor.

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Mortgage Interest Deduction: Not A Tax Break For The Middle Class [View all] abelenkpe Nov 2012 OP

I tend to agree. If it was a flat deduction, it would be more fair to middle class owners. NYC_SKP Nov 2012 #1

Do owners of apartment buildings get the deduction for their mortgages? gollygee Nov 2012 #2

Depends on the owner doesn't it? abelenkpe Nov 2012 #9

This stuff always seems to end up being more complicated gollygee Nov 2012 #18

No. Travis_0004 Nov 2012 #10

Thank you! gollygee Nov 2012 #15

While technically true, this answer is missleading. While apartment (or any rental property) kelly1mm Nov 2012 #17

Finally a correct answer ArcticFox Nov 2012 #32

Years and years of experience. You would be suprised what people think they know about taxes.nt kelly1mm Nov 2012 #40

I think it stinks.... ohheckyeah Nov 2012 #3

I'm happy to see it go.... mike_c Nov 2012 #4

I agree with limiting it to 1 home and having a cap. Incitatus Nov 2012 #5

It depends on the area abelenkpe Nov 2012 #8

They will probably spend their deduction in the local economy too. Incitatus Nov 2012 #11

Yeah I thought it was pretty odd too. abelenkpe Nov 2012 #14

How much do you have to make to afford a $750K home? madinmaryland Nov 2012 #12

You'd think that wouldn't you? abelenkpe Nov 2012 #13

No, you move up from a $500,000 home and apply your unearned equity. libdem4life Nov 2012 #19

gotta admit everyone I know who bought a home abelenkpe Nov 2012 #26

In the So Cal real estate business for years. Many deals were 3 and 4 legged...called "contingent" libdem4life Nov 2012 #31

Whoa abelenkpe Nov 2012 #37

In a very big way. It reduces the purchasing power of new buyers to buy the current inventory libdem4life Nov 2012 #39

This message was self-deleted by its author dtom67 Nov 2012 #6

I would be unable to afford my home without the deduction. RomneyLies Nov 2012 #7

I think most middle income folks overvalue the taxes saved through the mortgage deduction. Hoyt Nov 2012 #16

I agree with this Travis_0004 Nov 2012 #20

I don't think one could buy a garage in LA for 250,000 abelenkpe Nov 2012 #22

Price of living in a cool place. Hoyt Nov 2012 #27

No, it's the price of living where one can find a job. abelenkpe Nov 2012 #36

let's do some rough math. it's not unreasonable to pay a quarter of your income on mortgage unblock Nov 2012 #21

Not really huge. After deductions, let's say you have a taxable income Hoyt Nov 2012 #23

not huge? that's 3.5% of ALL income, not marginal income. unblock Nov 2012 #35

So one has taxable income of $300,000 -- I think they can squeeze out $10,500 in additional taxes. Hoyt Nov 2012 #41

"proposed reducing the limit on the deduction to $500,000 of a home's value" Lex Nov 2012 #24

Gee that really depends on where you live. Warren Stupidity Nov 2012 #28

you still get the deduction to $500,000 of a home's value - it's not like NO deduction Lex Nov 2012 #30

That article seems mostly wrong cthulu2016 Nov 2012 #25

Limit the deduction to only one home. nt Ilsa Nov 2012 #29

I sold my home this summer because I was underwater and got a great deal to get beyurslf Nov 2012 #33

Mortgage deductions in the 8-12% interest days in the 80s-90s real estate bubble were significantly libdem4life Nov 2012 #34

Most people can't deduct morgage interest because it isn't more than the standard deduction. L0oniX Nov 2012 #38