4 ms·

The mortgage interest deduction has a cap though, right? https://turbotax.intuit.com/tax-tips/home-ownership/deducting-mortgage-interest-faqs/L4a9KF9mI https:/

The mortgage interest deduction has a cap though, right? https://turbotax.intuit.com/tax-tips/home-ownership/deducting-mortgage-interest-faqs/L4a9KF9mI https://turbotax.intuit.com/tax-tips/home-ownership/deductin... seems to indicate there's a cap on the amount, as well as number of homes (only primary and secondary, not third, fourth etc) Or are people going around those caps somehow?

aorloff 4y ago
The mortgage interest deduction is for your primary home. Investment property mortgage interest is a business expense
- nly 4y ago
  It's wild to me that Americans can deduct mortgage interest from their tax bill ...
  - muti 4y ago
    New Zealand only recently passed a law that will phase out rental interest deductions over 4 years https://www.ird.govt.nz/pages/campaigns/interest-limitation-rules https://www.ird.govt.nz/pages/campaigns/interest-limitation-...
  - Aeolun 4y ago
    I think Japan and the Netherlands have something similar. It’s fairly limited in Japan at least, but it does a lot to offset property taxes.
  - vintermann 4y ago
    This is very common. We have it in Norway too. It started in 1882. At that time, it was mainly farmers who had mortgages, so the idea was to encourage productivity, making it less costly for them to buy new land for cultivation (You might wonder, wouldn't this just drive up land prices? I wonder, too.) But once you have them, they're hard to get rid of. When they were in charge for 40+ years, Labour defended them because they wanted to push for homeownership so working people didn't have to live at the mercy of landlords. In the 80s I believe they considered changing it, but then the Conservatives (who of course benefit disproportionately from the deduction) were in a position to block it. These days there is an interest deduction on ALL loans, not just mortgages. Why and how that happened I have no idea.
  - refurb 4y ago
    Americans used to be able to deduct interest from their credit card bills until the mid-80s.
  - ramblerman 4y ago
    It's not uncommon in Europe, with the clause that it's a home you live in.

aorloff 4y ago

The mortgage interest deduction is for your primary home. Investment property mortgage interest is a business expense

nly 4y ago
It's wild to me that Americans can deduct mortgage interest from their tax bill ...
- muti 4y ago
  New Zealand only recently passed a law that will phase out rental interest deductions over 4 years https://www.ird.govt.nz/pages/campaigns/interest-limitation-rules https://www.ird.govt.nz/pages/campaigns/interest-limitation-...
- Aeolun 4y ago
  I think Japan and the Netherlands have something similar. It’s fairly limited in Japan at least, but it does a lot to offset property taxes.
- vintermann 4y ago
  This is very common. We have it in Norway too. It started in 1882. At that time, it was mainly farmers who had mortgages, so the idea was to encourage productivity, making it less costly for them to buy new land for cultivation (You might wonder, wouldn't this just drive up land prices? I wonder, too.) But once you have them, they're hard to get rid of. When they were in charge for 40+ years, Labour defended them because they wanted to push for homeownership so working people didn't have to live at the mercy of landlords. In the 80s I believe they considered changing it, but then the Conservatives (who of course benefit disproportionately from the deduction) were in a position to block it. These days there is an interest deduction on ALL loans, not just mortgages. Why and how that happened I have no idea.
- refurb 4y ago
  Americans used to be able to deduct interest from their credit card bills until the mid-80s.
- ramblerman 4y ago
  It's not uncommon in Europe, with the clause that it's a home you live in.