Is it a full deduction?
Jay wrote:It's something that has been in the American tax system since before i was born and is one of the primary incentives for home ownership. People bought their homes with the incentive as a variable in their decision. They can get rid of it going forward but it's not fair to pull it away unless current homeowners are grandfathered.
Cybargs wrote:I agree about the state taxes but not sure about the mortgage interest. Your choice to live there bud.
I've read columns by George Will and Glenn Reynolds in the last few days championing getting rid of the mortgage interest deduction and the deduction for State taxes. Ok, well adjust my income tax bracket based on cost of living then, because relatively wealthy southerners are getting a free ride.
eg if you pay 20k in interests a year, you get 20k worth of tax credits. Then again you guys have a stupidly high property tax.
We have the opposite, we get deductions only out of investment properties (only if you reasonably attempt to lease them out).