Say Goodbye to the Mortgage Deduction

[I AM NOT THAT GUY 5,715]

Are mortgage deductions on taxes on the way out?

The Obama administration's proposed 2012 budget would leave the deduction in place, but places some limits on the deductions claimed by families making more than $250,000 a year.

The Office of Management and Budget, which helps the White House develop its budget, estimates that the mortgage-interest deduction cost the government $79 billion in forgone taxes in 2010. That could rise to as much as $144 billion in 2016, the OMB estimates. While some observers argue that the government should get rid of the deduction to help plug its budget gap, others say homeowners should be allowed to keep their money.

The president's deficit commission, co-chaired by former UNC system President Erskine Bowles, advocates changing the tax deduction to a tax credit, similar to what the Greenlining Institute proposes. It would also cap eligible mortgages at $500,000 instead of $1 million, and eliminate any tax benefits for second homes and home equity loans.

Read more: http://www.charlotteobserver.com/2011/02/27/2095486/mortgage-deductions.html#ixzz1FkkyJiP0

Edited March 5, 2011 by Some Old Guy

[^_^ 5,021]

The president's deficit commission, co-chaired by former UNC system President Erskine Bowles, advocates changing the tax deduction to a tax credit, similar to what the Greenlining Institute proposes. It would also cap eligible mortgages at $500,000 instead of $1 million, and eliminate any tax benefits for second homes and home equity loans.

Sounds good. Do it!

[I AM NOT THAT GUY 5,715]

http://www.youtube.com/watch?v=N-A-CdofnQw

Sen. Tom Coburn (R-OK) appeared on the Hugh Hewitt Show and revealed some startling items in the bipartisan 2012 budget negotiations, including a plan to eliminate the mortgage interest deduction for homes valued higher than $500,000.

[mawilson 2,133]

The Obama administration's proposed 2012 budget would leave the deduction in place, but places some limits on the deductions claimed by families making more than $250,000 a year.

####. Oh well, I don't need a mortgage anyway.

[Ban Hammer 13,530]

####. Oh well, I don't need a mortgage anyway.

hope and change not working well for you?

[mawilson 2,133]

hope and change not working well for you?

Better than for others, I think, so I'm not complaining.

[Gary and Alla 3,694]

I am not one of those guys that borrows 125% of my home value or gets the adjustable rate mortgages with 5% down so my mortgage interest payment and deductions have not been more than the standard deduction we are allowed anyway for quite a few years. I just think it has been phased out by increased standard deductions and lower interest rates. But that's OK. Better to pay off the loan and have NO interest deduction and no monthly payment.

If Implemented, the FAIR TAX would eliminate all this BS and just let us keep what me make. No tax returns at all.

[Gary and Alla 3,694]

People will get all upset over basically nothing. 47% of Americans do not pay income tax due to deductions and adjustments. The standard deduction is up to $11,000+ You have to be paying a LOT of mortgage interest to beat that, or a LOT of medical expenses. How much do you want to pay in order to get back the TAX ONLY on the interest?

I say get rid of income and all deductions will go with it. FAIR TAX

[HannahP 119]

I am not one of those guys that borrows 125% of my home value or gets the adjustable rate mortgages with 5% down so my mortgage interest payment and deductions have not been more than the standard deduction we are allowed anyway for quite a few years.

Eh. As someone currently shopping for a home, you can get a fixed 30 year at 4.75% easily. And most of the homes that we've been looking at are priced around $30-50,000 below whatever the inflated price that the buyer bought it at. (And we're maxing out at $120,000. Dunno what those mcmansions in the western states are selling for.)

[^_^ 5,021]

The mortgage deduction comes in real handy around here. If you're a couple with young kids and want to live in a clean and safe area, you're going to pay no less than 350K for a townhouse/condo or 400K for a house. Your property tax bill will be anywhere from 8K to 15K, depending on the town. Between interest on that 300K loan (on a 400K house with 100K down) and the 12K (let's say) tax bill, you're already well over the standard ded.

[HannahP 119]

The mortgage deduction comes in real handy around here. If you're a couple with young kids and want to live in a clean and safe area, you're going to pay no less than 350K for a townhouse/condo or 400K for a house. Your property tax bill will be anywhere from 8K to 15K, depending on the town. Between interest on that 300K loan (on a 400K house with 100K down) and the 12K (let's say) tax bill, you're already well over the standard ded.

Wow, sucks to live where you live.

[^_^ 5,021]

Wow, sucks to live where you live.

The taxes suck, yeah. I don't mind the property values though - the market sets prices based on demand so things cost what they're worth.

[Ban Hammer 13,530]

Wow, sucks to live where you live.

[I AM NOT THAT GUY 5,715]

The taxes suck, yeah. I don't mind the property values though - the market sets prices based on demand so things cost what they're worth.

Time for land reform in the US. How come the commies don't want to get behind that? You can get a trashed out 1200 ft² century old house in SF Marina District for half a million, or get something built in the last decade or two, with a real front and back yard, 2.5 car garage, and 2 or 3 times the square footage for half the price, but a one to two hour commute if you want to work in SF City.

[^_^ 5,021]

You can get a trashed out 1200 ft² century old house in SF Marina District for half a million, or get something built in the last decade or two, with a real front and back yard, 2.5 car garage, and 2 or 3 times the square footage for half the price, but a one to two hour commute if you want to work in SF City.

Location is everything. Some locations are just more desirable. The market decides that.