3 ms·

This works if your tax situation is W-2 income and investment income from mainstream investments. You start to run into issues for anything you have to report,

This works if your tax situation is W-2 income and investment income from mainstream investments. You start to run into issues for anything you have to report, like small business income. There are also privacy concerns. Mortgage interest is tax is tax deductible, but should the lender be obligated to tell the government it has a relationship with you? In the case of an employer, it makes more sense because the government is taking what it's owed. For deductions, it's what you're owed, so the onus can be more on the individual.

csdreamer7 5y ago
> Mortgage interest is tax is tax deductible, but should the lender be obligated to tell the government it has a relationship with you? Yes, the govt has an interest in knowing the source of revenue for banks. Not only for money laundering and tax fraud, but ensuring the banks have stable income sources to avoid bank failures.
sokoloff 5y ago
Mortgage interest is already reported to the IRS on Form 1098 and that form is required to be filed by the lender if you paid more than $600 in interest for the year.