I'm fine with the change in mortgage deduction but the article falsely assumes that because one group of people get a tax deduction that the other group is paying for that deduction.

I thoroughly agree with you. I think it so unfair that those who can't afford a home are made to help subsidize ours. And to the 2nd post-doesn't a deduction mean that other tax payers are made to subsidize it? Plus when there is a deduction it seems to me that it encourages that action-i.e. mortgages, state income tax

the new tax law is a huge win for the banks too.

Home Equity loan interest is no longer deductible - so if you want to take cash out of your house, you'll need to do a refinance.

That, among other things are what people are talking about when they say low income citizens get the shaft.

Also, renters dont get property deductions but generally get a tax rebate, often in the amount of about 1 months rent.

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who's smarter than you're? i'm!

Maybe in the apartment renters vs homeowners case, but in the house renter vs homeowner case the rent will just rise to cover the costs.

So the real winners will be large apartment complex owners.

But it about time somebody had the guts to take a swipe at the mortgage deduction.

Okay, I'll admit to being an idiot.

Can someone break this down how it will affect me:

Primary Mortgage--$420K
Home equity--$50K
Vacation home:--$110K

I'm getting confused on exactly how this will be going forward.

Also--I have occasionally rented out my vacation home in 2017. I am going to do this again in 2018. I just put $20K into the house with for kitchen, bath, basement.

I am a former landlord. Am I better claiming this as a rental? Formerly I would say yes. I would claim the rent as income and then deduct the expenses.

Thanks.

It depends. For the last decade it seems like apartment rents have gone only one way: up. In many markets, the additional inventory that will come available over the next 6-12 months will be sufficient to cool rental increases... and perhaps lead to decreases. You are seeing that now in Chicago. JDL has completed about 600 units in the last six months and they're only about 40% full at the moment (nice buildings in nice neighborhoods). They'll have to lower asking rents to fill those units.

I think that I have been proclaiming that indirect subsidies need to be considered for ~10 years here in the LR. Glad to see that everybody finally agrees with me....

Of course, it remains more complex. Rental prices will simply rise to cover most of the additional costs, until a different steady-state is reached. Most of this is "zero-sum". The biggest danger is that such abrupt actions could lead to major depreciation in housing assets which would be deflationary. Most "conservatives" here spent a generation arguing for (and largely winning) the basic viewpoint that growth is inherently the highest goal. Moderate Dems (Obama/Clintons/Everyone to the right of Bernie) embrace that, while pointing out that the indirect subsidies create obvious inequalities, and carried to an extreme, are unsustainable. Glad to have you, comrade BK ;)!

I’m glad my landlord is 95 years old and house paid off decades ago

Won’t be glad when she passes tho

And thank goodness for Prop 13.

Chris, you will get a reality check soon enough.

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2017 Cervelo P2
2017 Cervelo S2
itraininla.com
#itraininla

Meaning..... ?

Meaning...
Your landlord is going to want market rate ;>)
and you live in a nice neighborhood.

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2017 Cervelo P2
2017 Cervelo S2
itraininla.com
#itraininla

Luckily we've been there 13 years and pay waaaaay under market (by about $1k). SHe's started bumping up slowly, but $100 per year. We've been spoiled for sure. I'm not looking forward to the day they want to sell after she passes.