Tax changes for Mortgage Interest?
- Thread starter sinwagon
- Start date
None of the proposals I've read have a blanket removal of mortgage interest as a deduction. The most frequent one I've heard is a *limitation* on the value of the house - somewhere around a *million*. So unless you own a home worth a million bucks, you won't be affected. You won't even be affected MUCH if your home is worth JUST over a million.
But, right after the deductions on your 1040, is the whole "tax *credit*" area - and that IS something that might be substituted for it. The promotion of home ownership is in the economy's best interest, and the best long term investment for retirement.
I'm not entirely crazy about tax "credits" - I'm currently taking classes for tax preparation, and to be honest, there's something not right about someone who doesn't pay ANY taxes walking home with a check for 4000 bucks - because of things like earned income credit. To me, refunds should be about recovering taxes you overpaid - not just getting money outright from Uncle Sam for taxes you never paid in the first place. And secondly, I think tax credits are something that can be erased in one fell swoop - if they ever decided to substitute a mortgage interest "credit", I suspect it means they're trying to phase it all out completely.
But, right after the deductions on your 1040, is the whole "tax *credit*" area - and that IS something that might be substituted for it. The promotion of home ownership is in the economy's best interest, and the best long term investment for retirement.
I'm not entirely crazy about tax "credits" - I'm currently taking classes for tax preparation, and to be honest, there's something not right about someone who doesn't pay ANY taxes walking home with a check for 4000 bucks - because of things like earned income credit. To me, refunds should be about recovering taxes you overpaid - not just getting money outright from Uncle Sam for taxes you never paid in the first place. And secondly, I think tax credits are something that can be erased in one fell swoop - if they ever decided to substitute a mortgage interest "credit", I suspect it means they're trying to phase it all out completely.
FromTexas
This Space for Rent
The talk is based around a presidential tax review committees findings. There were two seperate groups and two sets of findings. The key point they agreed to push forward was reducing the home deductible interest from the million dollar home value down to a more reasonable value. The second point was changing it from a deduction to a tax credit. It is not eliminating it. It is a different way of calculating it.
Bush placed the limit on the committee that any change must still encourage home ownership (protect tax incentives for it), collect the same amount of tax, and remain progressive.
Ignore the talking heads because they don't either understand or haven't looked into what is really going on.
However it is moot in the end because dozens of committees have been done over the years to make the income tax simpler, but it is rare some, if any, of their suggestions ever get approved by Congress (despite the fact they all say they are for a simpler income tax code).
Bush placed the limit on the committee that any change must still encourage home ownership (protect tax incentives for it), collect the same amount of tax, and remain progressive.
Ignore the talking heads because they don't either understand or haven't looked into what is really going on.
However it is moot in the end because dozens of committees have been done over the years to make the income tax simpler, but it is rare some, if any, of their suggestions ever get approved by Congress (despite the fact they all say they are for a simpler income tax code).
FromTexas said:
I think the state is MOST confusing when it comes to doing your taxes. Both could make it simpler by not saying things like "Take line 20 multiply it by line 21 then subtract the amount from the table on page 30 and enter it in line 23" Its so annoying! I only have my kids and house to deduct so I just buy the tax software and do it and even then its confusing with the way some of the questions are asked.
a Mortgage Company won the case in court of Florida
A local Florida court ruling in the Florida state says MERS, an electronic mortgage registry that acts as a nominee in county land records on behalf of financial lending companies and servicers, can officially serve as a party in court when it comes to foreclosure actions in the state. The ruling, which was made in the Second District Court of Appeals in Florida state, will affect the entire mortgage business.
We undertook this lawsuit not just for MERS but for the industry as a whole, said R.K. Arnold, president and CEO of Vienna, Virginia-based MERS. This victory is for the entire financial lending companies because MERS is no different than a servicer when it comes to foreclosures, and this case was our opportunity to prove it in court.
According to the MERS official press release, the decision allows traditional servicers to act as a party in foreclosure cases with the ruling stating that the holder of a note has standing to seek enforcement of the note. It also says the standing is broader than just actual ownership of the beneficial interest in the note
<br>
----------------------
Florida Mortgage Resource Center
A local Florida court ruling in the Florida state says MERS, an electronic mortgage registry that acts as a nominee in county land records on behalf of financial lending companies and servicers, can officially serve as a party in court when it comes to foreclosure actions in the state. The ruling, which was made in the Second District Court of Appeals in Florida state, will affect the entire mortgage business.
We undertook this lawsuit not just for MERS but for the industry as a whole, said R.K. Arnold, president and CEO of Vienna, Virginia-based MERS. This victory is for the entire financial lending companies because MERS is no different than a servicer when it comes to foreclosures, and this case was our opportunity to prove it in court.
According to the MERS official press release, the decision allows traditional servicers to act as a party in foreclosure cases with the ruling stating that the holder of a note has standing to seek enforcement of the note. It also says the standing is broader than just actual ownership of the beneficial interest in the note
<br>
----------------------
Florida Mortgage Resource Center
awpitt
Main Streeter
sinwagon said:
EIC was first proposed by the Reagan administration to reward low income workers with a little help because they’re working instead of staying on welfare. The main rule for one to get EIC is that one must work. I realize this leaves the possibility for someone, who earns such a low income that the tax table say their tax is zero, and they still get a refund because of the credit but I think Reagan had it right in this case. It’s a way to give someone an extra boost because they’re working. Besides, just because someone might not pay income tax doesn’t mean they don’t pay taxes at all.