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The tax advantages are pretty rare now that the standard deduction was raised to $12k per individual. Only something like 10% of homes still use the interest de
by CincinnatiMan 6y ago
The tax advantages are pretty rare now that the standard deduction was raised to $12k per individual. Only something like 10% of homes still use the interest deduction.
- bluedevil2k 6y agoAnd tax laws can change really quickly, so even if it's not used much now, in 6 months it may be most Americans are itemizing again.
- cactus2093 6y agoYep between the salt tax deduction cap, incredibly low interest rates, recently lowered limit of $750k for how much home value qualifies for the mortgage interest deduction, and recently raised standard deductions, for a married couple (and maybe also for a single person but I haven’t calculated that in detail) the tax benefits of owning a house are very close to 0. Which is probably a good thing, there’s no need to give the huge breaks we have been the past few decades to people wealthy enough to buy a house. But what a bizarrely complicated way to go about enacting this change instead of just eliminating the mortgage interest deduction altogether.
- sokoloff 6y agoI’m in favor of the owner-occupied mortgage interest deduction (MID) because I believe that owner-occupied housing should not be at a disadvantage compared to commercially rented-out property. Without MID, landlords can (tend to) outbid owner-occupants for property because of differential tax treatment. (Commercial loans for profit-seeking businesses are always tax-deductible as we tax profits and not revenues.)
- nulbyte 6y agoFor federal taxes, maybe. But some states allow you to itemize deductions, even if you don't itemize them for federal tax purposes. This is a not insignificant advantage for me.