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joec
ParticipantShould’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.
ParticipantShould’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.
ParticipantI’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?
ParticipantI’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?
ParticipantI’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?
ParticipantI’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?
ParticipantI’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?
Participantbearishgurl, I think if you look at my message again, my point is that MR PROPERTIES ARE PROBABLY LOWER IN VALUE THAN ONES WITHOUT.
Yes, I meant to scream that at you. I said: “Places with higher MR, the house ends up cheaper, lower MR, higher house price…”
It’s getting annoying doing this back and forth with you on new vs. old properties. Some people like new, some like old, live with it and let people choose to live where they want.
That said, back on topic and back to Stonebridge, I mentioned two places in Santee that has no MR fees for new developments. Can you name any others for some actual people who actually want to buy a new house? ? ? hello?
As for comparing a place with or without MR, NO or LOW HOA, it’s no SH*T what people would prefer. Me included.
I’m just saying give some of the buyers here (pigg) and in Stonebridge, Del Sur some credit that they know what they are getting into and that they aren’t all idiots that they will have a higher tax bill come prop tax time…
If they can buy in La Jolla and Del Mar for the space, schools and location they want, you can bet they would.
Participantbearishgurl, I think if you look at my message again, my point is that MR PROPERTIES ARE PROBABLY LOWER IN VALUE THAN ONES WITHOUT.
Yes, I meant to scream that at you. I said: “Places with higher MR, the house ends up cheaper, lower MR, higher house price…”
It’s getting annoying doing this back and forth with you on new vs. old properties. Some people like new, some like old, live with it and let people choose to live where they want.
That said, back on topic and back to Stonebridge, I mentioned two places in Santee that has no MR fees for new developments. Can you name any others for some actual people who actually want to buy a new house? ? ? hello?
As for comparing a place with or without MR, NO or LOW HOA, it’s no SH*T what people would prefer. Me included.
I’m just saying give some of the buyers here (pigg) and in Stonebridge, Del Sur some credit that they know what they are getting into and that they aren’t all idiots that they will have a higher tax bill come prop tax time…
If they can buy in La Jolla and Del Mar for the space, schools and location they want, you can bet they would.
Participantbearishgurl, I think if you look at my message again, my point is that MR PROPERTIES ARE PROBABLY LOWER IN VALUE THAN ONES WITHOUT.
Yes, I meant to scream that at you. I said: “Places with higher MR, the house ends up cheaper, lower MR, higher house price…”
It’s getting annoying doing this back and forth with you on new vs. old properties. Some people like new, some like old, live with it and let people choose to live where they want.
That said, back on topic and back to Stonebridge, I mentioned two places in Santee that has no MR fees for new developments. Can you name any others for some actual people who actually want to buy a new house? ? ? hello?
As for comparing a place with or without MR, NO or LOW HOA, it’s no SH*T what people would prefer. Me included.
I’m just saying give some of the buyers here (pigg) and in Stonebridge, Del Sur some credit that they know what they are getting into and that they aren’t all idiots that they will have a higher tax bill come prop tax time…
If they can buy in La Jolla and Del Mar for the space, schools and location they want, you can bet they would.
Participantbearishgurl, I think if you look at my message again, my point is that MR PROPERTIES ARE PROBABLY LOWER IN VALUE THAN ONES WITHOUT.
Yes, I meant to scream that at you. I said: “Places with higher MR, the house ends up cheaper, lower MR, higher house price…”
It’s getting annoying doing this back and forth with you on new vs. old properties. Some people like new, some like old, live with it and let people choose to live where they want.
That said, back on topic and back to Stonebridge, I mentioned two places in Santee that has no MR fees for new developments. Can you name any others for some actual people who actually want to buy a new house? ? ? hello?
As for comparing a place with or without MR, NO or LOW HOA, it’s no SH*T what people would prefer. Me included.
I’m just saying give some of the buyers here (pigg) and in Stonebridge, Del Sur some credit that they know what they are getting into and that they aren’t all idiots that they will have a higher tax bill come prop tax time…
If they can buy in La Jolla and Del Mar for the space, schools and location they want, you can bet they would.
Participantbearishgurl, I think if you look at my message again, my point is that MR PROPERTIES ARE PROBABLY LOWER IN VALUE THAN ONES WITHOUT.
Yes, I meant to scream that at you. I said: “Places with higher MR, the house ends up cheaper, lower MR, higher house price…”
It’s getting annoying doing this back and forth with you on new vs. old properties. Some people like new, some like old, live with it and let people choose to live where they want.
That said, back on topic and back to Stonebridge, I mentioned two places in Santee that has no MR fees for new developments. Can you name any others for some actual people who actually want to buy a new house? ? ? hello?
As for comparing a place with or without MR, NO or LOW HOA, it’s no SH*T what people would prefer. Me included.
I’m just saying give some of the buyers here (pigg) and in Stonebridge, Del Sur some credit that they know what they are getting into and that they aren’t all idiots that they will have a higher tax bill come prop tax time…
If they can buy in La Jolla and Del Mar for the space, schools and location they want, you can bet they would.
Participant[quote=ucodegen]A long time ago, I was against the home mortgage interest deduction.. that is until I heard how some people were using corporations to get around it.
What the mortgage interest deduction does, is harmonizes (makes consistent) the types of deductions that corporations can use, the types of deductions the wealthy were able to use because corps could and the wealthy had good attorneys, vs what the rest of the not so wealthy population.
I would suspect what may happen is the IRS start looking at what a HELOC is used for, and whether the tax deduction on the interest is really ‘legal’ or justified. If equity is withdrawn from a property to improve it, the interest on it is tax deductible. If equity is withdrawn from a property to fund a nice new BMW, the interest covering that HELOC(amount) is not supposed to be tax deductible.
Another item the IRS might consider, is looking at what money is used for when there is a cash-out refi, or a second added to the mortgage.
A lot of the abuses that occurred leading up to the bubble implosion were aided by the equity withdraw interest payments being tax-deductible even though the money was not used to improve the property.
[quote joec]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 … I wouldn’t be surprised if one change leads to a whole bunch of strategies around it…[/quote]
BINGO.. though it is not quite as simple. I believe the real method is to create an investment identity and have the property in that identity rent back to you. Run the identity as a NOL until the property is sold. On the investment entities (like investment clubs) tax treatment is passthrough on income and type of income (LTCG, STCG etc)[/quote]Yeah, your idea sounds much better than renting someone else’s house. 🙂
I just think fighting this uphill road of mortgage interest deduction is a waste of time. They will probably have an easier time just letting the Bush cuts expire or simply raise rates across the board or have no cap on Social Security taxes, etc…
Especially as was noted above, over 50% of the population are home owners and most of those folks vote. If they pass anything, the people will probably kick that person out and elect someone new to simply repeal the tax law.
Participant[quote=ucodegen]A long time ago, I was against the home mortgage interest deduction.. that is until I heard how some people were using corporations to get around it.
What the mortgage interest deduction does, is harmonizes (makes consistent) the types of deductions that corporations can use, the types of deductions the wealthy were able to use because corps could and the wealthy had good attorneys, vs what the rest of the not so wealthy population.
I would suspect what may happen is the IRS start looking at what a HELOC is used for, and whether the tax deduction on the interest is really ‘legal’ or justified. If equity is withdrawn from a property to improve it, the interest on it is tax deductible. If equity is withdrawn from a property to fund a nice new BMW, the interest covering that HELOC(amount) is not supposed to be tax deductible.
Another item the IRS might consider, is looking at what money is used for when there is a cash-out refi, or a second added to the mortgage.
A lot of the abuses that occurred leading up to the bubble implosion were aided by the equity withdraw interest payments being tax-deductible even though the money was not used to improve the property.
[quote joec]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 … I wouldn’t be surprised if one change leads to a whole bunch of strategies around it…[/quote]
BINGO.. though it is not quite as simple. I believe the real method is to create an investment identity and have the property in that identity rent back to you. Run the identity as a NOL until the property is sold. On the investment entities (like investment clubs) tax treatment is passthrough on income and type of income (LTCG, STCG etc)[/quote]Yeah, your idea sounds much better than renting someone else’s house. 🙂
I just think fighting this uphill road of mortgage interest deduction is a waste of time. They will probably have an easier time just letting the Bush cuts expire or simply raise rates across the board or have no cap on Social Security taxes, etc…
Especially as was noted above, over 50% of the population are home owners and most of those folks vote. If they pass anything, the people will probably kick that person out and elect someone new to simply repeal the tax law.
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