4 ms·

If only there was a law that allowed you to deduct a significant amount of mortgage interest from taxes on a home but not on other property.... Oh wait...

• akudha 5y ago
  Trying to be sarcastic and clever? Any taxes that you pay on your second home onwards simply gets factored into the rent and gets passed on to the tenants. It is just cost of doing business, nothing more. The tenants suffer, not the buyers.
  • deleted 5y ago
    [deleted]
  • refurb 5y ago
    That’s not how rent works. Just because the landlord’s costs go up doesn’t mean rents go up.
    • harambae 5y ago
      Yes, to some extent. The rent is dictated by the market price, which could be a gain or loss for the owner. But if every landlord's costs go up, then everyone's rent probably goes up, since the landlords are competing with each other.
      • refurb 5y ago
        But not all landlords have the same costs. When I was renting my landlord bought back in 1998, so their costs were likely $800 for a place that rented for $3,000.
• mumblemumble 5y ago
  If we're talking the US, that law is for the benefit of the rich. In general, the interest won't exceed the standard deduction unless you've got a rather obscenely priced home.
  • ghaff 5y ago
    That didn't use to be the case. The mortgage interest deduction used to be a solidly middle class benefit. But, yes, with relatively recent changes to the tax code, it's a lot harder for most people to hit the standard deduction and therefore mortgage interest is often not deductible unless someone has a higher end home in an expensive area.
    • lotsofpulp 5y ago
      The mortgage interest deduction was and is a benefit for lenders. It's sole benefit is to increase the amount one can borrow by effectively lowering the cost of borrowing. A solidly middle class benefit would be cash given to the middle class. A benefit for existing home owners selling their homes to middle class buyers is a cash benefit given to middle class buyers. A subsidy for borrowing money is a benefit for the person lending money.
    • pkaye 5y ago
      Isn't there a cap on mortgage interest deductions at this point?
    • refurb 5y ago
      You mean the changes that made the standard deduction larger than typical mortgage interest deductions? It’s not that the deduction went away, it’s that everyone got a bigger standard deduction so no need for the mortgage interest.