[quote=enron_by_the_sea][quote=squat250]I recall being afraid that the mortgage interest deduction would be yanked as soon as I bought a house. I believe I was told not to worry about that.
Well.
It is always best to expect[/quote]
There is another mortgage interest deduction. It is in schedule-E. All you have to do is rent out the house you own to someone else and start renting identical house nearby. You can not only deduct mortgage interest but also HOA, insurance and everything else. No one is proposing to take that away 🙂
The above is precisely why removal of mortgage interest deduction will not result into meaningful increase in tax revenue in the very long term. People’s preferences will just shift to renting because that will become the most tax efficient arrangement in the society.[/quote]
I don’t know but it’s getting pretty hard for me to talk to an accountant that I almost never talk to…He’s pretty busy these days.
It doesn’t quite work that way enron…When you rent out a house to someone else, you can deduct the mortgage as an expense but you also have to report the rental income.
However, if you rent someone else’s house, you can’t deduct your rental cost (unless your poor..And in that case, you probably can’t qualify to buy a home)…
So I’m not sure how this would be beneficial for you…Seems like a lot of paperwork to report a $0 gain.
