Elimination of Mortgage Deduction

[davelj]

Not gonna happen anytime soon, at least. But even if they try to start phasing it out in, say, five years or so (presumably after housing has stabilized) you still have the issue of how many folks benefit from it (homeowners with mortgages) versus how many folks don’t (renters and homeowners with no mortgage). I think it’s possible several years down the road, but it’s a tough sell when over half of all households benefit from it on net basis. I don’t see a lot of politicians jumping on this bandwagon, but… what is more likely is a lower cap on the deduction, such that only the folks with the largest mortgages are getting penalized. Democracy being what it is, that could pass.

[davelj]

[quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.

[davelj]

[quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.

[davelj]

[quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.

[davelj]

[quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.

[davelj]

[quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.

[Coronita]

[quote=davelj][quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.[/quote]

*If we’re talking about the child tax credit, most higher income families already can’t get this.

The phaseout begins at
$110,000, for joint returns.
$75,000 for single returns.
$55,000 for each married but seperate return.

*If we’re talking about the standard deduction for a dependent, it’s just reduces your taxable income by $3,650 per dependent roughly. For higher income earners, this is a Whop-dee-do. You’re going to paying up the noses in AMT anyway 🙂

*If you’re talking about child care credit, it’s just $2100, and most of the time, child care expenses are pretax if you have a dependent care account.

*The biggest tax break is the adoption credit…Roughly, $12,150 (as of 2009). But it costs a lot to adopt to begin with.

Other than that, removing any type of child tax credit/deduction isn’t going to make a huge difference for higher wage earners. Where it’s going to hit are people at lower income scales.
So much for no higher taxes for middle class 🙂

[Coronita]

[quote=davelj][quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.[/quote]

*If we’re talking about the child tax credit, most higher income families already can’t get this.

The phaseout begins at
$110,000, for joint returns.
$75,000 for single returns.
$55,000 for each married but seperate return.

*If we’re talking about the standard deduction for a dependent, it’s just reduces your taxable income by $3,650 per dependent roughly. For higher income earners, this is a Whop-dee-do. You’re going to paying up the noses in AMT anyway 🙂

*If you’re talking about child care credit, it’s just $2100, and most of the time, child care expenses are pretax if you have a dependent care account.

*The biggest tax break is the adoption credit…Roughly, $12,150 (as of 2009). But it costs a lot to adopt to begin with.

Other than that, removing any type of child tax credit/deduction isn’t going to make a huge difference for higher wage earners. Where it’s going to hit are people at lower income scales.
So much for no higher taxes for middle class 🙂

[Coronita]

[quote=davelj][quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.[/quote]

*If we’re talking about the child tax credit, most higher income families already can’t get this.

The phaseout begins at
$110,000, for joint returns.
$75,000 for single returns.
$55,000 for each married but seperate return.

*If we’re talking about the standard deduction for a dependent, it’s just reduces your taxable income by $3,650 per dependent roughly. For higher income earners, this is a Whop-dee-do. You’re going to paying up the noses in AMT anyway 🙂

*If you’re talking about child care credit, it’s just $2100, and most of the time, child care expenses are pretax if you have a dependent care account.

*The biggest tax break is the adoption credit…Roughly, $12,150 (as of 2009). But it costs a lot to adopt to begin with.

Other than that, removing any type of child tax credit/deduction isn’t going to make a huge difference for higher wage earners. Where it’s going to hit are people at lower income scales.
So much for no higher taxes for middle class 🙂

[Coronita]

[quote=davelj][quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.[/quote]

*If we’re talking about the child tax credit, most higher income families already can’t get this.

The phaseout begins at
$110,000, for joint returns.
$75,000 for single returns.
$55,000 for each married but seperate return.

*If we’re talking about the standard deduction for a dependent, it’s just reduces your taxable income by $3,650 per dependent roughly. For higher income earners, this is a Whop-dee-do. You’re going to paying up the noses in AMT anyway 🙂

*If you’re talking about child care credit, it’s just $2100, and most of the time, child care expenses are pretax if you have a dependent care account.

*The biggest tax break is the adoption credit…Roughly, $12,150 (as of 2009). But it costs a lot to adopt to begin with.

Other than that, removing any type of child tax credit/deduction isn’t going to make a huge difference for higher wage earners. Where it’s going to hit are people at lower income scales.
So much for no higher taxes for middle class 🙂

[Coronita]

[quote=davelj][quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]

Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.[/quote]

*If we’re talking about the child tax credit, most higher income families already can’t get this.

The phaseout begins at
$110,000, for joint returns.
$75,000 for single returns.
$55,000 for each married but seperate return.

*If we’re talking about the standard deduction for a dependent, it’s just reduces your taxable income by $3,650 per dependent roughly. For higher income earners, this is a Whop-dee-do. You’re going to paying up the noses in AMT anyway 🙂

*If you’re talking about child care credit, it’s just $2100, and most of the time, child care expenses are pretax if you have a dependent care account.

*The biggest tax break is the adoption credit…Roughly, $12,150 (as of 2009). But it costs a lot to adopt to begin with.

Other than that, removing any type of child tax credit/deduction isn’t going to make a huge difference for higher wage earners. Where it’s going to hit are people at lower income scales.
So much for no higher taxes for middle class 🙂

[joec]

Just read this article over weekend. You see this topic come up every 5 years or so, but I doubt it would ever pass and if it did, the only change I’d think they implement is lowering the amount from the 1.1 mil to something less (maybe based on state so in CA, probably 697 something or other)…

What I’ve always thought was annoying is that for income properties, you could always deduct all your expenses so if they made this across the board cut completely, you’d see all the home owners become renters and just maintain their deduction by turning their current home into a rental (assuming it could cash flow of course)…

They would then also start deducting all those HOA fees as well take 26.5 depreciation as well as all maintenance costs. The home mortgage and property tax is a pretty big deduction for more middle class folks so I wouldn’t be surprised if one change leads to a whole bunch of strategies around it…

[joec]

Just read this article over weekend. You see this topic come up every 5 years or so, but I doubt it would ever pass and if it did, the only change I’d think they implement is lowering the amount from the 1.1 mil to something less (maybe based on state so in CA, probably 697 something or other)…

What I’ve always thought was annoying is that for income properties, you could always deduct all your expenses so if they made this across the board cut completely, you’d see all the home owners become renters and just maintain their deduction by turning their current home into a rental (assuming it could cash flow of course)…

They would then also start deducting all those HOA fees as well take 26.5 depreciation as well as all maintenance costs. The home mortgage and property tax is a pretty big deduction for more middle class folks so I wouldn’t be surprised if one change leads to a whole bunch of strategies around it…

[joec]

Just read this article over weekend. You see this topic come up every 5 years or so, but I doubt it would ever pass and if it did, the only change I’d think they implement is lowering the amount from the 1.1 mil to something less (maybe based on state so in CA, probably 697 something or other)…

What I’ve always thought was annoying is that for income properties, you could always deduct all your expenses so if they made this across the board cut completely, you’d see all the home owners become renters and just maintain their deduction by turning their current home into a rental (assuming it could cash flow of course)…

They would then also start deducting all those HOA fees as well take 26.5 depreciation as well as all maintenance costs. The home mortgage and property tax is a pretty big deduction for more middle class folks so I wouldn’t be surprised if one change leads to a whole bunch of strategies around it…

[joec]

Just read this article over weekend. You see this topic come up every 5 years or so, but I doubt it would ever pass and if it did, the only change I’d think they implement is lowering the amount from the 1.1 mil to something less (maybe based on state so in CA, probably 697 something or other)…

What I’ve always thought was annoying is that for income properties, you could always deduct all your expenses so if they made this across the board cut completely, you’d see all the home owners become renters and just maintain their deduction by turning their current home into a rental (assuming it could cash flow of course)…

They would then also start deducting all those HOA fees as well take 26.5 depreciation as well as all maintenance costs. The home mortgage and property tax is a pretty big deduction for more middle class folks so I wouldn’t be surprised if one change leads to a whole bunch of strategies around it…

[Author]

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