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It’s fine to say that people shouldn’t plan around tax situations, but that tax break has been thought to be untouchable for a long time now. I’m a millennial w
by awinder 9y ago
It’s fine to say that people shouldn’t plan around tax situations, but that tax break has been thought to be untouchable for a long time now. I’m a millennial who bought last year so for me, this doesn’t sound very fair. Boomers got to take advantage of favorable tax write offs on their homes for decades; I’ll be able to get in on that for 2 years. 2.
- cmcginty 9y agoI thought if you have a mortgage then you are grandfathered in, no?
- awinder 9y agoyou are, but the removal of the state & local income tax deduction means only a small % of people will ever claim mortgage deductions compared to today. You’d need over 24K in mortgage interest + property taxes.
- harryh 9y agoThe mortgage interest deduction is bad. Economists are almost universal in their agreement on this topic. Sure it sucks that some people got to take advantage of a bad thing in the past, but that isn't a good argument for keeping it around just for the sake of generational fairness.
- awinder 9y agoThat’s just one facet, I don’t think that’s the only reason to keep it around. I think it’s irresponsible economics to encourage an economic behavior and then to uproot it abruptly. I think the knock on effects on the housing market and rental markets haven’t been appropriately priced in. I think there’s a lot of ways for this to go sideways and the payoff isn’t that great. Couple that to the estate tax changes which are not an economic driver and help to curb wealth inequalities and I think it’s a raw deal.
- tastyham 9y agoIf you have significantly more than $500k in mortgage interest you are either rich or choosing to live in a top-10 realestate market.
- awinder 9y agoYou don’t have to live in a top 10 real estate market because losing the SALT deduction neuters the mortgage interest deduction.