General Discussion

stopbush

(24,810 posts)

29. The deduction is huge when you first buy a home and your interest payment

Sun Aug 6, 2017, 02:55 AM

Aug 2017

counts for 95% of your monthly mortgage payment. Over the course of 30 years, you start paying off more of the principle.

It's very important in high COL areas of the country. We certainly took advantage of the deduction when we owned homes in NJ, then CA. But we rent now, so we don't get the deduction, which really isn't at all fair. The landlord gets to deduct mortgage interest on their first and second homes up to a limit of $1.1-million. They can also deduct other costs like property taxes from the income they make from a rental for tax purposes.

I say eliminate it now so it hurts the Rs in the short term.

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Trump weighs slashing one of the most popular tax deductions [View all] Zorro Aug 2017 OP

kick Angry Dragon Aug 2017 #1

That'll go far! elleng Aug 2017 #2

As it primarily benefits the well off, there's little chance of it being eliminated. n/t PoliticAverse Aug 2017 #3

I disagree, somewhat, PoliticAverse. raven mad Aug 2017 #12

I don't see how it could be that big. hfojvt Aug 2017 #22

I get the deduction every year wryter2000 Aug 2017 #53

This Just Might Turn Trump's Supporters Against Him.... global1 Aug 2017 #4

But, I think he's also proposing to significantly increase the standard deduction which would Hoyt Aug 2017 #8

Trump's supporters are ride or die. Yavin4 Aug 2017 #17

Well, their fear is well-placed. yardwork Aug 2017 #35

That's the conundrum. The middle class is, and has always been, a liberal economic construct Yavin4 Aug 2017 #39

Right! So this is a winning issue for Democrats. yardwork Aug 2017 #40

Yes and no. Yavin4 Aug 2017 #45

Branded by whom? The vast majority of eligible voters don't care a flip. yardwork Aug 2017 #46

Refi'd 5 years ago. I can barely itemize now interest is so low! Roland99 Aug 2017 #5

It's also one of the few Ronnie left to working people Warpy Aug 2017 #6

And it won't affect his base that much because most of them don't have a mortgage. They rent. haveahart Aug 2017 #7

Sure... HDSam Aug 2017 #9

BS bhikkhu Aug 2017 #11

How is that post a RW talking point? yardwork Aug 2017 #36

Since HDSam Aug 2017 #50

Its only popular among people who itemize bhikkhu Aug 2017 #10

Or middle class people who live in high cost areas hack89 Aug 2017 #13

In Seattle our first home with 1200 square feet and a partial basement pnwmom Aug 2017 #16

That's a sweet investment for you! MoonRiver Aug 2017 #31

We sold it a long time ago for about $120k. Too bad we didn't keep it as a rental! n/t pnwmom Aug 2017 #32

Yes, but at least you made money. MoonRiver Aug 2017 #38

Right -- if you buy with a fixed rate mortgage at least you know your payment will be constant. pnwmom Aug 2017 #41

We always bought with fixed rate. MoonRiver Aug 2017 #43

My house is valued at 24,000. Kaleva Aug 2017 #18

I'm rich and live in a McMansion? News to me. Barack_America Aug 2017 #14

Probably this sounds cruel... bhikkhu Aug 2017 #20

Many people bought with the assumption that the deduction would exist dsc Aug 2017 #21

it's kinda funny though hfojvt Aug 2017 #25

Do you have young children in childcare? Barack_America Aug 2017 #44

if your property value tanked hfojvt Aug 2017 #23

That's not necessarily true in all states Massacure Aug 2017 #47

The median home price in Seattle right now is above $700,000. pnwmom Aug 2017 #15

if you can afford a $700,000 home hfojvt Aug 2017 #24

People have jobs and families they don't want to leave. You would leave in a heartbeat, pnwmom Aug 2017 #26

if they have a substantial mortgage on a $700,000 home hfojvt Aug 2017 #49

I'm hardly rich HDSam Aug 2017 #52

it's popular among the rich hfojvt Aug 2017 #19

Terrific idea dalton99a Aug 2017 #27

What would a dick do? smirkymonkey Aug 2017 #28

The deduction is huge when you first buy a home and your interest payment stopbush Aug 2017 #29

The landlord Sgent Aug 2017 #33

It has skewed the market and land use, reducing the availability of low and moderate price bousing 4139 Aug 2017 #30

That's really bad re-reporting by Yahoo; they changed "lower the cap" to "get rid of" muriel_volestrangler Aug 2017 #34

"It actually makes economic sense too" - more reason it won't happen. n/t PoliticAverse Aug 2017 #51

I'd expect Drumpf to make it only for homes $500k or higher. Dark n Stormy Knight Aug 2017 #55

Waiting for Trump to couple the elimination of that deduction with elimination of no_hypocrisy Aug 2017 #37

Meanwhile, he'll preserve the deduction of interest.... Adrahil Aug 2017 #42

Do it. Xolodno Aug 2017 #48

Is this equalized to any degree by some other change in taxation? Not Ruth Aug 2017 #54