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Tue Nov 27, 2012, 06:54 PM

Do you take the mortgage interest deduction on your federal or state income tax?

It appears that this might be something that is 'on the table' for tax changes now.

I had, for as long as I've owned a home...well, me and the bank.
A few years ago I did my tax return online (TaxAct) and when I finished it told me that our standard deduction was larger than our itemized deductions.
Wow!

We're retired and have few deductions. Mortgage interest, real estate tax, that's about it.
In Alabama, it still pays us to itemize on state income tax.

What's your situation?

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Arrow 13 replies Author Time Post
Reply Do you take the mortgage interest deduction on your federal or state income tax? (Original post)
trof Nov 2012 OP
Hassin Bin Sober Nov 2012 #1
HuckleB Nov 2012 #2
shanti Nov 2012 #3
mike_c Nov 2012 #4
Kelvin Mace Nov 2012 #7
mike_c Nov 2012 #8
Kelvin Mace Nov 2012 #13
trof Nov 2012 #9
Kelvin Mace Nov 2012 #11
trof Nov 2012 #10
Kelvin Mace Nov 2012 #12
2Design Nov 2012 #5
PATXgirl Nov 2012 #6

Response to trof (Original post)

Tue Nov 27, 2012, 06:55 PM

1. I do.

Between property tax and the mortgage interest deduction it is a nice chunk.

The repigs will throw anyone over the side just to keep the top rates and cap gains rate low.

They will even fuck their upper income supporters over as long as it keeps the rate low for a handful of supporters who support Norquist et al.

Read: Spending Millions To Save Billions to see just how few people/families are pulling the strings.

Top rate, capital gains and inheritance tax. Everything else is gravy. The top .0001% don't need mortgages. They WANT close to zero taxes.

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Response to trof (Original post)

Tue Nov 27, 2012, 06:56 PM

2. Yes, we do.

We would survive without it, but we would spend much less elsewhere. Others might struggle to keep their homes. This is not something that seems workable across the board, IMO.

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Response to trof (Original post)

Tue Nov 27, 2012, 06:57 PM

3. i have a mortgage credit certificate

from when i was a first time homeowner. it is supposed to be for the life of my mortgage. i did refinance once, but cannot do it again and retain the MCC. i think it's pretty shitty for them to even think about ending the mortgage interest credit, and hope MCC's aren't on the table as well!

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Response to trof (Original post)

Tue Nov 27, 2012, 07:07 PM

4. life long renter and frankly, I've never understood the morgage interest deduction....

I could understand it if ALL interest on loans was tax deductible, but singling out the mortgage interest seems justifiable only as an inducement to debt, i.e. as an incentive to enrich the banks. I'd be happy to see it go. Or, as I said, to see it extended to all forms of interest on debt.

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Response to mike_c (Reply #4)

Tue Nov 27, 2012, 07:17 PM

7. Once upon a time

All loan interest was deductible, even credit cards. That came to an end under Reagan.

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Response to Kelvin Mace (Reply #7)

Tue Nov 27, 2012, 07:19 PM

8. that makes a whole lot more sense to me than the mortgage interest deduction....

eom

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Response to mike_c (Reply #8)

Thu Nov 29, 2012, 10:00 AM

13. Yeah, but it encourages debt

(not good), and really hurt tax revenues.

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Response to Kelvin Mace (Reply #7)

Tue Nov 27, 2012, 07:59 PM

9. Yep, and taxes on S/S income.

Thanks to Ronnie I pay income tax on my S/S benefit.

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Response to trof (Reply #9)

Thu Nov 29, 2012, 09:52 AM

11. Now THAT was stupid

SS should be exempt, PERIOD.

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Response to mike_c (Reply #4)

Tue Nov 27, 2012, 08:03 PM

10. The 'Realtor's' lobby is powerful.

Not every real estate sales person is a 'Realtor'.
That's a national organization.
With a powerful lobby.
Mortgage interest deduction encourages HOME PURCHASES.

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Response to trof (Reply #10)

Thu Nov 29, 2012, 09:58 AM

12. I agree with the deduction within reason

but the following limits should apply:

1) Deduction capped at median price of a house in your state.

2) One and only one house.

3) Businesses may qualify only if: a) CEO pay not greater than 100 times lowest paid employee. b) no income is sheltered from taxes on foreign soil. c) 90% of employees must be in the U.S., including contractors. d) wages must be 150% poverty line minimum.

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Response to trof (Original post)

Tue Nov 27, 2012, 07:12 PM

5. mortgage interest deduction for multiple homes should be eliminated

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Response to trof (Original post)

Tue Nov 27, 2012, 07:16 PM

6. We do. The news report I just watched said it would cap the deduction on mortgages over 500K - 1Mill

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