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SD Realtor.
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March 4, 2011 at 4:40 PM #18591March 4, 2011 at 4:49 PM #673228March 4, 2011 at 4:49 PM #673287March 4, 2011 at 4:49 PM #673897March 4, 2011 at 4:49 PM #674034March 4, 2011 at 4:49 PM #674381March 5, 2011 at 4:23 AM #673318
cvrentguy
ParticipantObama’s proposing limiting mortgage deductions to 28% for families earning $250000 or more. For a home priced in the $800000’s with 30 yr fixed, 20% down at 5%, annual interest paid is around $30000 in the first yr and is lesser every year thereafter.A loss of 7% write-off on $30000 amounts to around $200 less savings every month. Seems very less to deter the high earners from making an emotional move such as home buying. Same goes with the capital gains exclusion. Hard to imagine anyone buying a home these days expecting a $250000 gain.
March 5, 2011 at 4:23 AM #673376ParticipantObama’s proposing limiting mortgage deductions to 28% for families earning $250000 or more. For a home priced in the $800000’s with 30 yr fixed, 20% down at 5%, annual interest paid is around $30000 in the first yr and is lesser every year thereafter.A loss of 7% write-off on $30000 amounts to around $200 less savings every month. Seems very less to deter the high earners from making an emotional move such as home buying. Same goes with the capital gains exclusion. Hard to imagine anyone buying a home these days expecting a $250000 gain.
March 5, 2011 at 4:23 AM #673987ParticipantObama’s proposing limiting mortgage deductions to 28% for families earning $250000 or more. For a home priced in the $800000’s with 30 yr fixed, 20% down at 5%, annual interest paid is around $30000 in the first yr and is lesser every year thereafter.A loss of 7% write-off on $30000 amounts to around $200 less savings every month. Seems very less to deter the high earners from making an emotional move such as home buying. Same goes with the capital gains exclusion. Hard to imagine anyone buying a home these days expecting a $250000 gain.
March 5, 2011 at 4:23 AM #674124ParticipantObama’s proposing limiting mortgage deductions to 28% for families earning $250000 or more. For a home priced in the $800000’s with 30 yr fixed, 20% down at 5%, annual interest paid is around $30000 in the first yr and is lesser every year thereafter.A loss of 7% write-off on $30000 amounts to around $200 less savings every month. Seems very less to deter the high earners from making an emotional move such as home buying. Same goes with the capital gains exclusion. Hard to imagine anyone buying a home these days expecting a $250000 gain.
March 5, 2011 at 4:23 AM #674471ParticipantObama’s proposing limiting mortgage deductions to 28% for families earning $250000 or more. For a home priced in the $800000’s with 30 yr fixed, 20% down at 5%, annual interest paid is around $30000 in the first yr and is lesser every year thereafter.A loss of 7% write-off on $30000 amounts to around $200 less savings every month. Seems very less to deter the high earners from making an emotional move such as home buying. Same goes with the capital gains exclusion. Hard to imagine anyone buying a home these days expecting a $250000 gain.
March 5, 2011 at 9:18 AM #673343UCGal
ParticipantI’m old enough to remember the time before the capital gains exclusion. It wasn’t that long ago – 1997, IIRC.
Because the rules could change again – people should save receipts for major improvements. I got in the habit with my first home and have continued this practice… just in case. IIRC the old rules didn’t tax the gain if you rolled it into an equal or more expensive house within 2 years.
As far as the mortgage interest exclusion… again, I remember when all credit interest was deductable – including credit cards. (until the mid 80’s). I think most of us would agree that credit card debt isn’t “good debt” and shouldn’t be favored in the tax code.
Personally, I won’t be impacted too much by the mortgage interest rate deduction changes – if they happen… I don’t earn enough and I’m doing my darndest to eliminate mortgage interest payments by paying off my house quickly. I’d rather have that money for my use – and the only way to eliminate mortgage interest payments is to pay off the mortgage.
I guess I’m an obnoxious saver.
March 5, 2011 at 9:18 AM #673401ParticipantI’m old enough to remember the time before the capital gains exclusion. It wasn’t that long ago – 1997, IIRC.
Because the rules could change again – people should save receipts for major improvements. I got in the habit with my first home and have continued this practice… just in case. IIRC the old rules didn’t tax the gain if you rolled it into an equal or more expensive house within 2 years.
As far as the mortgage interest exclusion… again, I remember when all credit interest was deductable – including credit cards. (until the mid 80’s). I think most of us would agree that credit card debt isn’t “good debt” and shouldn’t be favored in the tax code.
Personally, I won’t be impacted too much by the mortgage interest rate deduction changes – if they happen… I don’t earn enough and I’m doing my darndest to eliminate mortgage interest payments by paying off my house quickly. I’d rather have that money for my use – and the only way to eliminate mortgage interest payments is to pay off the mortgage.
I guess I’m an obnoxious saver.
March 5, 2011 at 9:18 AM #674012ParticipantI’m old enough to remember the time before the capital gains exclusion. It wasn’t that long ago – 1997, IIRC.
Because the rules could change again – people should save receipts for major improvements. I got in the habit with my first home and have continued this practice… just in case. IIRC the old rules didn’t tax the gain if you rolled it into an equal or more expensive house within 2 years.
As far as the mortgage interest exclusion… again, I remember when all credit interest was deductable – including credit cards. (until the mid 80’s). I think most of us would agree that credit card debt isn’t “good debt” and shouldn’t be favored in the tax code.
Personally, I won’t be impacted too much by the mortgage interest rate deduction changes – if they happen… I don’t earn enough and I’m doing my darndest to eliminate mortgage interest payments by paying off my house quickly. I’d rather have that money for my use – and the only way to eliminate mortgage interest payments is to pay off the mortgage.
I guess I’m an obnoxious saver.
March 5, 2011 at 9:18 AM #674149ParticipantI’m old enough to remember the time before the capital gains exclusion. It wasn’t that long ago – 1997, IIRC.
Because the rules could change again – people should save receipts for major improvements. I got in the habit with my first home and have continued this practice… just in case. IIRC the old rules didn’t tax the gain if you rolled it into an equal or more expensive house within 2 years.
As far as the mortgage interest exclusion… again, I remember when all credit interest was deductable – including credit cards. (until the mid 80’s). I think most of us would agree that credit card debt isn’t “good debt” and shouldn’t be favored in the tax code.
Personally, I won’t be impacted too much by the mortgage interest rate deduction changes – if they happen… I don’t earn enough and I’m doing my darndest to eliminate mortgage interest payments by paying off my house quickly. I’d rather have that money for my use – and the only way to eliminate mortgage interest payments is to pay off the mortgage.
I guess I’m an obnoxious saver.
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