rainerann
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- Joined
- Mar 18, 2017
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- 4,550
So the change regarding homeowners does work in the favor of the middle class, which does make me feel that the reform is somewhat balanced even if it is still imperfect and I would like to see more done. Apparently, homeowners will be able to deduct interest up to 750,000, so the change will only affect those with mortgages higher than 750,000. It used to be 1 million, which means that people who could afford really expensive homes were able to deduct the interest on their homes. This seems like an unnessary deduction. If you can afford a home over 750,000, you don't need the deduction unless we also cut spending to things that need to be cut like military.
"The mortgage interest deduction will be limited to $750,000 loans
The mortgage interest deduction has long been a huge money-saver for homeowners, and it still will be, but to a lesser extent. While homeowners could, up until now, deduct interest on a home loan of up to $1 million, that cap will be lowered to $750,000 come 2018. Now if you have an existing mortgage, you don't need to worry about this change, but if you're applying for a new home loan in 2018, you should know about the impending cap.
One thing to note about this reduction, however, is that it's not all that bad in the grand scheme of what could've been. Legislators have long been campaigning to eliminate or slash the mortgage interest deduction since it's been said to grossly favor the rich. And to some extent, that's true."
https://www.fool.com/retirement/2017/12/26/3-upcoming-tax-changes-homeowners-need-to-know-abo.aspx
"The mortgage interest deduction will be limited to $750,000 loans
The mortgage interest deduction has long been a huge money-saver for homeowners, and it still will be, but to a lesser extent. While homeowners could, up until now, deduct interest on a home loan of up to $1 million, that cap will be lowered to $750,000 come 2018. Now if you have an existing mortgage, you don't need to worry about this change, but if you're applying for a new home loan in 2018, you should know about the impending cap.
One thing to note about this reduction, however, is that it's not all that bad in the grand scheme of what could've been. Legislators have long been campaigning to eliminate or slash the mortgage interest deduction since it's been said to grossly favor the rich. And to some extent, that's true."
https://www.fool.com/retirement/2017/12/26/3-upcoming-tax-changes-homeowners-need-to-know-abo.aspx