Elimination of Mortgage Deduction

[joec]

Should’ve posted this earlier, but Fairmark (K. Thomas) posted just last week that the IRS recently went against a tax court ruling on something related to the HELOC deduction.

http://fairmark.com/2010/10/23/boost-in-deduction-for-large-mortgages/

I’ve also noticed other articles outside of folks getting 1.1 mil mortgages to write off now instead of the 1 mil acquisition…

Doesn’t sound like this is something the IRS will bother with if they just allowed this.

[afx114]

The Fiscal Commission just released their recommendations, and elimination of mortgage interest deduction is one of the things on their list of options:

In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.

A full list of their options is here: http://tpmdc.talkingpointsmemo.com/2010/11/deficit-commission-co-chairs-simpson-and-bowles-release-eye-popping-recommendations.php

Granted, the majority of these recommendations have less that 0% chance of happening.

[afx114]

The Fiscal Commission just released their recommendations, and elimination of mortgage interest deduction is one of the things on their list of options:

In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.

A full list of their options is here: http://tpmdc.talkingpointsmemo.com/2010/11/deficit-commission-co-chairs-simpson-and-bowles-release-eye-popping-recommendations.php

Granted, the majority of these recommendations have less that 0% chance of happening.

[afx114]

The Fiscal Commission just released their recommendations, and elimination of mortgage interest deduction is one of the things on their list of options:

In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.

A full list of their options is here: http://tpmdc.talkingpointsmemo.com/2010/11/deficit-commission-co-chairs-simpson-and-bowles-release-eye-popping-recommendations.php

Granted, the majority of these recommendations have less that 0% chance of happening.

[afx114]

The Fiscal Commission just released their recommendations, and elimination of mortgage interest deduction is one of the things on their list of options:

In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.

A full list of their options is here: http://tpmdc.talkingpointsmemo.com/2010/11/deficit-commission-co-chairs-simpson-and-bowles-release-eye-popping-recommendations.php

Granted, the majority of these recommendations have less that 0% chance of happening.

[afx114]

The Fiscal Commission just released their recommendations, and elimination of mortgage interest deduction is one of the things on their list of options:

In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.

A full list of their options is here: http://tpmdc.talkingpointsmemo.com/2010/11/deficit-commission-co-chairs-simpson-and-bowles-release-eye-popping-recommendations.php

Granted, the majority of these recommendations have less that 0% chance of happening.

[UCGal]

Thanks for posting that afx.

Ironically, I’d probably do ok under the proposed plans. We’re paying off our house and have a low balance, low interest rate – so losing the mortgage deduction isn’t the end of the world. Our family goal has been to eliminate that deduction by paying it off.

What I didn’t see addressed in the article is 401k funds. I would guess that since both plans are kind of tiered flat taxes (eliminating deductions) 401k/IRA contributions would go away. (No deductions so no tax deferred contributions.) But would you still be able to have the money already invested grow tax free?

The SS changes seem reasonable – but maybe I feel that way since I’ll be in my late 80’s/early 90’s when the means testing happens… by that time my assets will be spent down.

The documents linked at tpm seem to be broken – but you can see the full plan here:

http://documents.nytimes.com/draft-proposal-from-the-national-commission-on-fiscal-responsibility-and-reform?ref=politics#p=1

[UCGal]

Thanks for posting that afx.

Ironically, I’d probably do ok under the proposed plans. We’re paying off our house and have a low balance, low interest rate – so losing the mortgage deduction isn’t the end of the world. Our family goal has been to eliminate that deduction by paying it off.

What I didn’t see addressed in the article is 401k funds. I would guess that since both plans are kind of tiered flat taxes (eliminating deductions) 401k/IRA contributions would go away. (No deductions so no tax deferred contributions.) But would you still be able to have the money already invested grow tax free?

The SS changes seem reasonable – but maybe I feel that way since I’ll be in my late 80’s/early 90’s when the means testing happens… by that time my assets will be spent down.

The documents linked at tpm seem to be broken – but you can see the full plan here:

http://documents.nytimes.com/draft-proposal-from-the-national-commission-on-fiscal-responsibility-and-reform?ref=politics#p=1

[UCGal]

Thanks for posting that afx.

Ironically, I’d probably do ok under the proposed plans. We’re paying off our house and have a low balance, low interest rate – so losing the mortgage deduction isn’t the end of the world. Our family goal has been to eliminate that deduction by paying it off.

What I didn’t see addressed in the article is 401k funds. I would guess that since both plans are kind of tiered flat taxes (eliminating deductions) 401k/IRA contributions would go away. (No deductions so no tax deferred contributions.) But would you still be able to have the money already invested grow tax free?

The SS changes seem reasonable – but maybe I feel that way since I’ll be in my late 80’s/early 90’s when the means testing happens… by that time my assets will be spent down.

The documents linked at tpm seem to be broken – but you can see the full plan here:

http://documents.nytimes.com/draft-proposal-from-the-national-commission-on-fiscal-responsibility-and-reform?ref=politics#p=1

[UCGal]

Thanks for posting that afx.

Ironically, I’d probably do ok under the proposed plans. We’re paying off our house and have a low balance, low interest rate – so losing the mortgage deduction isn’t the end of the world. Our family goal has been to eliminate that deduction by paying it off.

What I didn’t see addressed in the article is 401k funds. I would guess that since both plans are kind of tiered flat taxes (eliminating deductions) 401k/IRA contributions would go away. (No deductions so no tax deferred contributions.) But would you still be able to have the money already invested grow tax free?

The SS changes seem reasonable – but maybe I feel that way since I’ll be in my late 80’s/early 90’s when the means testing happens… by that time my assets will be spent down.

The documents linked at tpm seem to be broken – but you can see the full plan here:

http://documents.nytimes.com/draft-proposal-from-the-national-commission-on-fiscal-responsibility-and-reform?ref=politics#p=1

[UCGal]

Thanks for posting that afx.

Ironically, I’d probably do ok under the proposed plans. We’re paying off our house and have a low balance, low interest rate – so losing the mortgage deduction isn’t the end of the world. Our family goal has been to eliminate that deduction by paying it off.

What I didn’t see addressed in the article is 401k funds. I would guess that since both plans are kind of tiered flat taxes (eliminating deductions) 401k/IRA contributions would go away. (No deductions so no tax deferred contributions.) But would you still be able to have the money already invested grow tax free?

The SS changes seem reasonable – but maybe I feel that way since I’ll be in my late 80’s/early 90’s when the means testing happens… by that time my assets will be spent down.

The documents linked at tpm seem to be broken – but you can see the full plan here:

http://documents.nytimes.com/draft-proposal-from-the-national-commission-on-fiscal-responsibility-and-reform?ref=politics#p=1

[enron_by_the_sea]

I more or less like all that has been proposed. Unfortunately chances of this going anywhere is ZERO.

[enron_by_the_sea]

I more or less like all that has been proposed. Unfortunately chances of this going anywhere is ZERO.

[enron_by_the_sea]

I more or less like all that has been proposed. Unfortunately chances of this going anywhere is ZERO.

[enron_by_the_sea]

I more or less like all that has been proposed. Unfortunately chances of this going anywhere is ZERO.

[Author]

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