The IRS Deductions Blog

Posts Tagged ‘tax deduction on mortgage interest’

Question: If Obama pushes a finance commission idea to ax the mortgage interest tax deduction how do you vote in 2012?

If you are a home owner your taxes will increase, if you rent your rent will increase as investors increase rents to recover the increased tax expense they will have to pay when the interest expense on their loans is no longer a tax deduction. Homeowners and renters as well would pay if this tax deduction is eliminated.

POLL: If your tax expense would increase or your rent would increase because the tax deduction is eliminated would you still vote for (a) Obama or would you vote for (b) a challenger?

If you are still in school and don’t own a home or rent a place there is no reason to answer, but you can still get your two points by indicating that you are a (c) student.

Any and all comments are welcome…but please at least indicate an A, B, or C selection.

Thanks.

Answer: The same way I voted in 2008 and 2010…against 0bama.

Items on Amazon Right Now for Tax Deduction On Mortgage Interest:

Martin Feldstein: A route to cutting the deficit

There is a way to cut budget deficits without raising tax rates. Cut âtax expenditures,â which are the special features of U.S. income tax law that subsidize mortgage borrowing, health insurance, local government spending and more.

Save The Mortgage Interest Tax Deduction

Question: Impact if mortgage interest tax deduction was abolished?

Economically speaking, what would the LONG TERM (after the dust settles) effect be if the tax deduction for mortgage interest were removed?

Answer: The principal benefit of the mortgage interest tax deduction is a cash flow bonus at fiscal year-end, which indicates that those wishing to purchase property would have to establish a stronger cash flow in order to do so, thus decreasing the volume of sales in the housing market.

It is nearly impossible to tell the overall result this would have on housing prices (a slowdown in increase, or an actual downward pressure) or on mortgage rates (ditto), because of the complexities of both markets.

The only certain result would be a decrease in activity in the housing market, and likely a decrease in charitable deductions (since these are of little tax benefit to people who don’t enjoy the mortgage interest deduction).

I’d like to think there’d be a drastic increase in affordability of housing, but I think too many structural shifts (size of housing, ease of use of infrastructure for commuting, etc) would have to take place for this result to occur.

Items on Amazon Right Now for Tax Deduction On Mortgage:

2009 Tax Deadline Approaches

Dec. 31 is the last day to take advantage of Tax Deductions for this year.

TAX DEDUCTIONS? MORTGAGE-FREEDOM.COM