4 ms·
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 obscen
by 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 agoThat 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 agoThe 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 agoIsn't there a cap on mortgage interest deductions at this point?
- refurb 5y agoYou 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.