Savage Beatings Posted August 28, 2007 Author Share Posted August 28, 2007 My wife has pretty much been a lifelong Democrat. After reading this article she has vowed to never again vote Democrat. Now that doesn't mean she will vote Republican or conservative, but this meaningless unpassable rhetoric just cost the Dems one fairly liberal vote. So what's the point of ticking people off like this (especially your own base)? Is Dingell just trying to become the new Al Gore... anything for the envrionment politician? Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted August 28, 2007 Share Posted August 28, 2007 And as a renter how many of your kids flood the schools without paying a dime in Property taxes.Free lunches/breakfast and so forth. Many renters dont even have to buy school supplies. Dont even give me the sob story that is included in your rent. Hey genius, a portion of my rent obviously goes to paying the lessor's property tax on the home. It's not like he's going to just eat that cost. And I don't have any kids in school yet. So there. Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted August 28, 2007 Share Posted August 28, 2007 Well, in all fairness, its a deduction: not a credit. And strong earners don't even get a dollar for dollar deduction for their interest, as those deductions become phased out once you start making "too much" money. Plus, there are already caps on the size of mortgages upon which interest can be deducted in the first place. I guess my point is that limiting the deductibility of mortgage interest isn't a new idea. No one gets a dollar per dollar deduction on interest paid on mortgages. They get a deduction of their highest tax bracket that they are in for the year as a percentage of that bracket. The highest acquisition indebtness level is $1,000,000 for mortage interest deductions and that is not subject to AMT. The highest amount of a HELOC is a $100,000 but cannot be deducted if you are in a AMT situation. This is another fine example of our elected officials being hard at work! Quote Link to comment Share on other sites More sharing options...
Kid Cid Posted August 28, 2007 Share Posted August 28, 2007 And as a renter how many of your kids flood the schools without paying a dime in Property taxes.Free lunches/breakfast and so forth. Many renters dont even have to buy school supplies. Dont even give me the sob story that is included in your rent. In 4 years, this is the first sign of intelligence I've ever seen from moneymakers. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted August 28, 2007 Share Posted August 28, 2007 Or consider the other option.Pay off the mortgage. Plus I heard if you don't pay taxes for seven years they just drop you from the mailing list. and mines payed off Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted August 28, 2007 Share Posted August 28, 2007 No one gets a dollar per dollar deduction on interest paid on mortgages. They get a deduction of their highest tax bracket that they are in for the year as a percentage of that bracket. The highest acquisition indebtness level is $1,000,000 for mortage interest deductions and that is not subject to AMT. The highest amount of a HELOC is a $100,000 but cannot be deducted if you are in a AMT situation. This is another fine example of our elected officials being hard at work! ?? I see no formula for reducing the Mortgage deduction on my Schedule A. What are you talking about? Some sort of lifetime cap? Quote Link to comment Share on other sites More sharing options...
MikesVikes Posted August 28, 2007 Share Posted August 28, 2007 Why should I as a renter subsidize you as an owner by paying for a quarter of your mortage interest when I don't get any benefit and am stuck with the lower standard deduction? (Of course I'll switch sides when I finally do buy a home.) Well if your getting the standard deduction, your getting more than you deserve unless your Itemized deductions would be the exact same. Quote Link to comment Share on other sites More sharing options...
westvirginia Posted August 28, 2007 Share Posted August 28, 2007 In 4 years, this is the first sign of intelligence I've ever seen from moneymakers. Um, no actually. Do you really think the owner of the rental property would be able to stay in business if their aggregate rent didn't cover their property taxes as well? You think they just pay them from the goodness of their heart? This is like the deal where your employer "contributes" 7.5% of your pay to social security. It's a cost of your employment, therefore it reduces your pay. The taxes are a cost of the building, therefore it raises your rent. Quote Link to comment Share on other sites More sharing options...
yo mama Posted August 28, 2007 Share Posted August 28, 2007 No one gets a dollar per dollar deduction on interest paid on mortgages. They get a deduction of their highest tax bracket that they are in for the year as a percentage of that bracket. The highest acquisition indebtness level is $1,000,000 for mortage interest deductions and that is not subject to AMT. The highest amount of a HELOC is a $100,000 but cannot be deducted if you are in a AMT situation. This is another fine example of our elected officials being hard at work! Yes, most people get a dollar for dollar *deduction.* (You pay $100 in interest, you get a $100 deduction: that's dollar for dollar) However, unlike a tax *credit* it doesn't create a dollar for dollar economic benefit, because the economic benefit of a deduction is tied to your individual effective tax rate (which is a function of your tax bracket(s)). But that's not what I was talking about. What I was talking about is that if you're married, and your adjustable gross income is over $150,500, then you can no longer deduction 100% of your Schedule A deductions (which includes mortgage interest). Like I said before, once you start making "too much" money, the benefit of your total itemized deductions begins to phase out somewhat. Check out the itemized deduction worksheet on Page A-7 of the instructions to Schedule A&B. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted August 28, 2007 Share Posted August 28, 2007 Yes, most people get a dollar for dollar *deduction.* (You pay $100 in interest, you get a $100 deduction: that's dollar for dollar) However, unlike a tax *credit* it doesn't create a dollar for dollar economic benefit, because the economic benefit of a deduction is tied to your individual effective tax rate (which is a function of your tax bracket(s)). But that's not what I was talking about. What I was talking about is that if you're married, and your adjustable gross income is over $150,500, then you can no longer deduction 100% of your Schedule A deductions (which includes mortgage interest). Like I said before, once you start making "too much" money, the benefit of your total itemized deductions begins to phase out somewhat. Check out the itemized deduction worksheet on Page A-7 of the instructions to Schedule A&B. Well, if that is the case, then go away the deduction. Screw the middle class. Quote Link to comment Share on other sites More sharing options...
yo mama Posted August 28, 2007 Share Posted August 28, 2007 (edited) Well, if that is the case, then go away the deduction. Screw the middle class. I like the interest deduction: its one of the few "tax welfare" programs that I can get support 100%. My only point initially was that placing limits on the mortgage interest deduction isn't a new idea. But I didn't express any qualitative opinion on whether the current proposal was bad or good. I just chimed in to clarify a few facts. Edited August 28, 2007 by yo mama Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted August 28, 2007 Share Posted August 28, 2007 I like the interest deduction: its one of the few "tax welfare" programs that I can get support 100%. My only point initially was that placing limits on the mortgage interest deduction isn't a new idea. But I didn't express any qualitative opinion on whether the current proposal was bad or good. I just chimed in to clarify a few facts. I was being serious, get rid of it. I'm sick of this country taxing some but not all. Either every homeowner should get the deduction, or none should. I'm for equality. Quote Link to comment Share on other sites More sharing options...
yo mama Posted August 28, 2007 Share Posted August 28, 2007 I was being serious, get rid of it. I'm sick of this country taxing some but not all. Either every homeowner should get the deduction, or none should. I'm for equality. The phase out doesn't target just interest deductions, though. It targets all Schedule A deductions. But I don't mind. I'm willing to pay what my country requires of me. No more, no less. If/when they require more than I'm willing to pay, I'll move. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted August 28, 2007 Share Posted August 28, 2007 Yes, most people get a dollar for dollar *deduction.* (You pay $100 in interest, you get a $100 deduction: that's dollar for dollar) However, unlike a tax *credit* it doesn't create a dollar for dollar economic benefit, because the economic benefit of a deduction is tied to your individual effective tax rate (which is a function of your tax bracket(s)). But that's not what I was talking about. What I was talking about is that if you're married, and your adjustable gross income is over $150,500, then you can no longer deduction 100% of your Schedule A deductions (which includes mortgage interest). Like I said before, once you start making "too much" money, the benefit of your total itemized deductions begins to phase out somewhat. Check out the itemized deduction worksheet on Page A-7 of the instructions to Schedule A&B. Just curious what is it for a single person? married is $150,500 threshold Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted August 28, 2007 Share Posted August 28, 2007 Just curious what is it for a single person? married is $150,500 threshold $3.24 Quote Link to comment Share on other sites More sharing options...
yo mama Posted August 28, 2007 Share Posted August 28, 2007 Just curious what is it for a single person? married is $150,500 threshold $76k and change, if memory serves. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted August 28, 2007 Share Posted August 28, 2007 $76k and change, if memory serves. Ouch that stinks. Ill def get hit with AMT this year Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted August 28, 2007 Share Posted August 28, 2007 Ouch that stinks. Ill def get hit with AMT this year Go marry someone. Quote Link to comment Share on other sites More sharing options...
yo mama Posted August 28, 2007 Share Posted August 28, 2007 Ouch that stinks. Ill def get hit with AMT this year Keep in mind, the phase out for Schedule A deductions for income taxation is an issue that is distinct from getting hit with AMT. Quote Link to comment Share on other sites More sharing options...
yo mama Posted August 28, 2007 Share Posted August 28, 2007 Go marry someone. What's crazy is that kids don't help you for AMT purposes. Having a big ol' mortgage does, though. Quote Link to comment Share on other sites More sharing options...
twiley Posted August 28, 2007 Share Posted August 28, 2007 Go marry someone. That certainly won't help if your wife is making good money. Quote Link to comment Share on other sites More sharing options...
Chavez Posted August 28, 2007 Share Posted August 28, 2007 Easy for you to say. You get an extra dependent deduction this year. Breeding has its advantages, it's true. I don't make the tax laws, I just attempt to milk them for all they're worth. Quote Link to comment Share on other sites More sharing options...
Chavez Posted August 28, 2007 Share Posted August 28, 2007 Who's to judge what is the appropriate amount of living space for a family? This is just more of the typical class warfare the left continues to try ignite. More than likely those of us who have a house larger than 3k sq ft are already paying a greater percentage in taxes on our income anyway. So now the libs are wanting to pile on more? Less a liberal objection than a question about what your conspicuous consumption is really gaining you - if you and your wife need a full-size basketball court to play one-on-one, then your 3000+ sq feet is probably justified. Quote Link to comment Share on other sites More sharing options...
muck Posted August 29, 2007 Share Posted August 29, 2007 Just a few of the several scenarios under which a family could pretty easily justify having more than 3000sft for their primary residence: 1) More than 2.4 kids 2) Home based business 3) Home school 4) Extended family living under the same roof 5) Investments housed in the property (i.e., wine, art, antiques, collectables, etc) 6) Inherited the house 7) Unusual medical needs ...etc... Quote Link to comment Share on other sites More sharing options...
DKF Posted August 29, 2007 Share Posted August 29, 2007 Just one question for you guys that think that that having a limit on tax breaks is unfair.... So if spending too much money on a house means that you should recieve no special considerations (positive or negative) tax-wise, does that mean that earning too much money should have no special considerations (postive or negative) tax-wise? Meaning should we not therefore eliminate the cap that is paid into Social Security? Fair is fair after all. Quote Link to comment Share on other sites More sharing options...
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