Great...just as I'm STARTING to invest, there are rumblings of limiting the deductions???
Anyone think this will actually come to pass?
So this is a slim-chance proposal to limit interest deductions on primary homes with mortgage balances over $500,000.
If you're not in a high priced market with a massive mcmansion labor camp, I mean primary home, it won't effect you at all.
It's a fart in the wind for 97.6% of all homeowners if it does pass. I didn't see it mention investment property at all. Invest away!
The interest elimination proposals I've seen benefit about everyone because it will double our standard deduction. I doubt anything will pass that messes with the mortgage interest deduction, but a higher standard deduction will help most everybody.
Hate to say it, but the mortgage interest deduction heavily benefits the wealthier people, leaving the average and below behind. That and the 121 exclusion on gain of primary sale. I have taken advantage of both for over 15 years. Just pointing out an economic truth, not a political view. Cheers!
Thank you very much for clearing that up! As mentioned, I'm still a newbie so this stuff is still abbot foreign to me.
You're welcome @Tom Chen . It being written by the LA Times seems appropriate. It could affect a lot of homeowners in that area, but not by much. Fear sells.
Since rates have dropped so much, I haven't been able to deduct mortgage interest on my primary since 2012. It doesn't exceed my standard deduction. Like that for a lot of folks.
I'm glad I was able to deduct hundreds of thousands paid in investment mortgage interest over the years, but I don't keep debt for that 'benefit'. Send me $10,000 and I'll return $3,000 back to you anytime.
The ROI on the mortgage interest deduction is -300%! You can get the same return by donating to charity, but you'll be doing good out there. Don't keep debt for the tax benefits!