i definitely come out ahead, even factoring in property taxes, by owning and making use of the HMID.
We are the same; our difference in deductions is...pretty significant.
My personal opinion remains (from the last time it was discussed) that the MID does not usually factor into people's decision to buy or not buy a home--most people look at the down payment, potential mortgage payment, and (hopefully) consider their property taxes. I think it's exceedingly rare, even at the upper end, to then say 'but we can add this much to our loan amount, because we'll get 20%-ish back on our MID!' You don't usually plan for deductions unless you have a specific tax strategy in mind.
Financial Times reports that there is now consideration of limiting the deductibility of interest for businesses. Yay! Maybe we'll be able to crack the debt bias of the U.S. tax code that way.
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tuxkamenreally took this picture.Registered Userregular
Real estate agents definitely take MID into account when they tell you how much you can afford and what payments will be like.
Loan officers (I think this is what you meant, since real estate agents by and large don't give a damn what you can afford beyond what you claim you can, until you actually get to the offer phase) take the MID into their calculations, but these don't have any bearing on what you can afford or be approved for, because you have to be able to make the payments first in order to get the deduction. In the half-dozen times we've done loans or refis, mortgage interest has come up exactly never as a customer-facing line item--it doesn't show up on loan approvals, GFEs, escrow documents, or anything like that. What you're approved for is simply a matter of income-to-debt ratios.
This link has some good claim-vs-reality info about the MID :
the interest deduction subsidizes the borrowing of stronger firms. the more they would have paid in tax, the larger the subsidy for their debt. so any firm that's successful gets to use this deduction and previous loss carry-forwards. so it's not really encouraging firms to go willy-nilly on taking up debt and then going bankrupt.
I mean, if you want to end the deductibility of interest, you will probably need to end it full stop, not limit it.
i could see them requiring capitalization of interest and then amortizing that
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We are the same; our difference in deductions is...pretty significant.
My personal opinion remains (from the last time it was discussed) that the MID does not usually factor into people's decision to buy or not buy a home--most people look at the down payment, potential mortgage payment, and (hopefully) consider their property taxes. I think it's exceedingly rare, even at the upper end, to then say 'but we can add this much to our loan amount, because we'll get 20%-ish back on our MID!' You don't usually plan for deductions unless you have a specific tax strategy in mind.
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Loan officers (I think this is what you meant, since real estate agents by and large don't give a damn what you can afford beyond what you claim you can, until you actually get to the offer phase) take the MID into their calculations, but these don't have any bearing on what you can afford or be approved for, because you have to be able to make the payments first in order to get the deduction. In the half-dozen times we've done loans or refis, mortgage interest has come up exactly never as a customer-facing line item--it doesn't show up on loan approvals, GFEs, escrow documents, or anything like that. What you're approved for is simply a matter of income-to-debt ratios.
This link has some good claim-vs-reality info about the MID :
http://www.sfgate.com/business/networth/article/Mortgage-interest-deduction-claims-facts-4129555.php
Games: Ad Astra Per Phalla | Choose Your Own Phalla
It’s not a very important country most of the time
http://steamcommunity.com/id/mortious
I mean, if you want to end the deductibility of interest, you will probably need to end it full stop, not limit it.
i could see them requiring capitalization of interest and then amortizing that
but then that's income smoothing and that's weird