[joec]

[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 If equity is withdrawn from a property to improve it, the interest on it is tax deductible. If equity is withdrawn from a property to fund a nice new BMW, the interest covering that HELOC(amount) is not supposed to be tax deductible.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.

[joec]

[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.

[joec]

[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.

[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…

[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]

Outside of the 2 places in Santee that I know of (and Skyranch has an insane HOA for absolutely no value which might as well be MR), are there any NEW developments in SD that doesn’t have MR?

With Prop 13 changes, it seems like that’s the main way for builders to build these places now.

It seems for folks looking for a new home, it’s either an old home or just live with the MR (some are lower than others though) and they factor that into their cost equation.

I don’t know how much of a deterrent it is honestly since most folks just look at the total nut they have to pay. Places with higher MR, the house ends up cheaper, lower MR, higher house price…

I just don’t think it’s as much as a deterrent as people make it out to be. I think like TG said, he has to pay some tax on some special bonds, but if the house is 100k less, does it really matter?

Same goes for the family who said they just bought in Del Sur which generally has large MR fees as well.

I just think folks who are blinded by “MR” BAD BAD BAD will do anything to avoid it even if the house was $1…

[joec]

Outside of the 2 places in Santee that I know of (and Skyranch has an insane HOA for absolutely no value which might as well be MR), are there any NEW developments in SD that doesn’t have MR?

With Prop 13 changes, it seems like that’s the main way for builders to build these places now.

It seems for folks looking for a new home, it’s either an old home or just live with the MR (some are lower than others though) and they factor that into their cost equation.

I don’t know how much of a deterrent it is honestly since most folks just look at the total nut they have to pay. Places with higher MR, the house ends up cheaper, lower MR, higher house price…

I just don’t think it’s as much as a deterrent as people make it out to be. I think like TG said, he has to pay some tax on some special bonds, but if the house is 100k less, does it really matter?

Same goes for the family who said they just bought in Del Sur which generally has large MR fees as well.

I just think folks who are blinded by “MR” BAD BAD BAD will do anything to avoid it even if the house was $1…

[joec]

Outside of the 2 places in Santee that I know of (and Skyranch has an insane HOA for absolutely no value which might as well be MR), are there any NEW developments in SD that doesn’t have MR?

With Prop 13 changes, it seems like that’s the main way for builders to build these places now.

It seems for folks looking for a new home, it’s either an old home or just live with the MR (some are lower than others though) and they factor that into their cost equation.

I don’t know how much of a deterrent it is honestly since most folks just look at the total nut they have to pay. Places with higher MR, the house ends up cheaper, lower MR, higher house price…

I just don’t think it’s as much as a deterrent as people make it out to be. I think like TG said, he has to pay some tax on some special bonds, but if the house is 100k less, does it really matter?

Same goes for the family who said they just bought in Del Sur which generally has large MR fees as well.

I just think folks who are blinded by “MR” BAD BAD BAD will do anything to avoid it even if the house was $1…

[joec]

Outside of the 2 places in Santee that I know of (and Skyranch has an insane HOA for absolutely no value which might as well be MR), are there any NEW developments in SD that doesn’t have MR?

With Prop 13 changes, it seems like that’s the main way for builders to build these places now.

It seems for folks looking for a new home, it’s either an old home or just live with the MR (some are lower than others though) and they factor that into their cost equation.

I don’t know how much of a deterrent it is honestly since most folks just look at the total nut they have to pay. Places with higher MR, the house ends up cheaper, lower MR, higher house price…

I just don’t think it’s as much as a deterrent as people make it out to be. I think like TG said, he has to pay some tax on some special bonds, but if the house is 100k less, does it really matter?

Same goes for the family who said they just bought in Del Sur which generally has large MR fees as well.

I just think folks who are blinded by “MR” BAD BAD BAD will do anything to avoid it even if the house was $1…

[joec]

Outside of the 2 places in Santee that I know of (and Skyranch has an insane HOA for absolutely no value which might as well be MR), are there any NEW developments in SD that doesn’t have MR?

With Prop 13 changes, it seems like that’s the main way for builders to build these places now.

It seems for folks looking for a new home, it’s either an old home or just live with the MR (some are lower than others though) and they factor that into their cost equation.

I don’t know how much of a deterrent it is honestly since most folks just look at the total nut they have to pay. Places with higher MR, the house ends up cheaper, lower MR, higher house price…

I just don’t think it’s as much as a deterrent as people make it out to be. I think like TG said, he has to pay some tax on some special bonds, but if the house is 100k less, does it really matter?

Same goes for the family who said they just bought in Del Sur which generally has large MR fees as well.

I just think folks who are blinded by “MR” BAD BAD BAD will do anything to avoid it even if the house was $1…

[joec]

Seriously, it’s tempting to vote for these candidates to send a message that the current folks and current method of governing is unacceptable.

It doesn’t seem like it matters who’s in office really. I don’t see how this guy can do any worst that what we have now.

His car interview sounded like he was for some free market economics as well.

[joec]

Seriously, it’s tempting to vote for these candidates to send a message that the current folks and current method of governing is unacceptable.

It doesn’t seem like it matters who’s in office really. I don’t see how this guy can do any worst that what we have now.

His car interview sounded like he was for some free market economics as well.

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