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The New Coffee Room

  1. TNCR
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  3. SALT and mortgage deductions

SALT and mortgage deductions

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  • markM mark

    @george-k said in SALT and mortgage deductions:

    Standard deduction for a married couple is, what, $25K or so? Throw in a kid, and you're close to $30K.

    With the current value of the dollar, It should be more than twice that amount.

    Actually, I am all for income tax not kicking in until a person makes more than $65k per year or $130k for a married couple. FICA/Medicare would still be withheld.

    Unless there is a public health care option. Then just institute a 5-7% across the board tax on all income below $65k per person.

    LuFins DadL Offline
    LuFins DadL Offline
    LuFins Dad
    wrote on last edited by
    #13

    @mark said in SALT and mortgage deductions:

    @george-k said in SALT and mortgage deductions:

    Standard deduction for a married couple is, what, $25K or so? Throw in a kid, and you're close to $30K.

    With the current value of the dollar, It should be more than twice that amount.

    Actually, I am all for income tax not kicking in until a person makes more than $65k per year or $130k for a married couple. FICA/Medicare would still be withheld.

    Unless there is a public health care option. Then just institute a 5-7% across the board tax on all income below $65k per person.

    I still support a European style VAT

    The Brad

    X 1 Reply Last reply
    • LuFins DadL LuFins Dad

      @mark said in SALT and mortgage deductions:

      @george-k said in SALT and mortgage deductions:

      Standard deduction for a married couple is, what, $25K or so? Throw in a kid, and you're close to $30K.

      With the current value of the dollar, It should be more than twice that amount.

      Actually, I am all for income tax not kicking in until a person makes more than $65k per year or $130k for a married couple. FICA/Medicare would still be withheld.

      Unless there is a public health care option. Then just institute a 5-7% across the board tax on all income below $65k per person.

      I still support a European style VAT

      X Offline
      X Offline
      xenon
      wrote on last edited by
      #14

      @lufins-dad said in SALT and mortgage deductions:

      @mark said in SALT and mortgage deductions:

      @george-k said in SALT and mortgage deductions:

      Standard deduction for a married couple is, what, $25K or so? Throw in a kid, and you're close to $30K.

      With the current value of the dollar, It should be more than twice that amount.

      Actually, I am all for income tax not kicking in until a person makes more than $65k per year or $130k for a married couple. FICA/Medicare would still be withheld.

      Unless there is a public health care option. Then just institute a 5-7% across the board tax on all income below $65k per person.

      I still support a European style VAT

      I'm a big fan of consumption taxes as well.

      1 Reply Last reply
      • X Offline
        X Offline
        xenon
        wrote on last edited by
        #15

        A few clarifications.

        Mortgage deduction applies for debt up to $750k.

        That's only going to be north of $20K if you have a 4%+ rate and/or are in the early part of your mortgage cycle (with more going to interest).

        The SALT deduction is capped at 10K. That includes property, state income tax and even sales tax (rules are a bit wonky).

        AxtremusA 1 Reply Last reply
        • jon-nycJ jon-nyc

          @lufins-dad said in SALT and mortgage deductions:

          The Mortgage Interest Deduction is still there,

          It’s sorta there. They cap it at 10k. My property taxes are almost 35k. I have no mortgage, so unless my charitable giving is north of 14k I don’t itemize.

          Someone in my neighborhood with a big mortgage would have gotten hit even harder. (They capped that too).

          RenaudaR Offline
          RenaudaR Offline
          Renauda
          wrote on last edited by Renauda
          #16

          @jon-nyc said in SALT and mortgage deductions:

          My property taxes are almost 35k.

          Seriously?

          I can't imagine residential property taxes in that order of magnitude.

          I thought mine were high at just over $5K. They are not deductable from income tax either.

          Elbows up!

          jon-nycJ X 2 Replies Last reply
          • RenaudaR Renauda

            @jon-nyc said in SALT and mortgage deductions:

            My property taxes are almost 35k.

            Seriously?

            I can't imagine residential property taxes in that order of magnitude.

            I thought mine were high at just over $5K. They are not deductable from income tax either.

            jon-nycJ Offline
            jon-nycJ Offline
            jon-nyc
            wrote on last edited by jon-nyc
            #17

            @renauda

            Yep. Its a relatively modest house too. 2400 sq ft on 1/3 acre lot.

            It seems outrageous (and it is), but most people moving here from the city are giving up city income tax and private school tuition in exchange, so its a deal. (property taxes in the city are quite low)

            If I lived over the border in CT it would be half for the same house. But the commute to the city would be longer.

            You were warned.

            jon-nycJ RenaudaR 2 Replies Last reply
            • RenaudaR Renauda

              @jon-nyc said in SALT and mortgage deductions:

              My property taxes are almost 35k.

              Seriously?

              I can't imagine residential property taxes in that order of magnitude.

              I thought mine were high at just over $5K. They are not deductable from income tax either.

              X Offline
              X Offline
              xenon
              wrote on last edited by
              #18

              @renauda That's on the higher end. But not atypical.

              For myself - I have a modest home (our first one) in an admittedly good neighborhood. But it's not too much more expensive than the median Seattle price.

              Property taxes are 10K.

              1 Reply Last reply
              • jon-nycJ Offline
                jon-nycJ Offline
                jon-nyc
                wrote on last edited by
                #19

                I would say it's atypical.

                NJ as a state has the highest property taxes in the nation, but at county level it's Westchester, NY.

                You were warned.

                X 1 Reply Last reply
                • jon-nycJ jon-nyc

                  I would say it's atypical.

                  NJ as a state has the highest property taxes in the nation, but at county level it's Westchester, NY.

                  X Offline
                  X Offline
                  xenon
                  wrote on last edited by
                  #20

                  @jon-nyc said in SALT and mortgage deductions:

                  I would say it's atypical.

                  NJ as a state has the highest property taxes in the nation, but at county level it's Westchester, NY.

                  The unsaid part is that I'm assuming you have a nice house, Jon 🙂

                  So not atypical from that aspect. But yeah, I get what you're saying. The tax rate is particularly high where you are.

                  jon-nycJ 1 Reply Last reply
                  • jon-nycJ jon-nyc

                    @renauda

                    Yep. Its a relatively modest house too. 2400 sq ft on 1/3 acre lot.

                    It seems outrageous (and it is), but most people moving here from the city are giving up city income tax and private school tuition in exchange, so its a deal. (property taxes in the city are quite low)

                    If I lived over the border in CT it would be half for the same house. But the commute to the city would be longer.

                    jon-nycJ Offline
                    jon-nycJ Offline
                    jon-nyc
                    wrote on last edited by jon-nyc
                    #21

                    @jon-nyc said in SALT and mortgage deductions:

                    (property taxes in the city are quite low)

                    My Brooklyn place was over 2x the value of this place and the property taxes were under 5k.

                    You were warned.

                    1 Reply Last reply
                    • X xenon

                      @jon-nyc said in SALT and mortgage deductions:

                      I would say it's atypical.

                      NJ as a state has the highest property taxes in the nation, but at county level it's Westchester, NY.

                      The unsaid part is that I'm assuming you have a nice house, Jon 🙂

                      So not atypical from that aspect. But yeah, I get what you're saying. The tax rate is particularly high where you are.

                      jon-nycJ Offline
                      jon-nycJ Offline
                      jon-nyc
                      wrote on last edited by
                      #22

                      @xenon It's nice enough, but pretty modest - see above.

                      You were warned.

                      1 Reply Last reply
                      • X xenon

                        A few clarifications.

                        Mortgage deduction applies for debt up to $750k.

                        That's only going to be north of $20K if you have a 4%+ rate and/or are in the early part of your mortgage cycle (with more going to interest).

                        The SALT deduction is capped at 10K. That includes property, state income tax and even sales tax (rules are a bit wonky).

                        AxtremusA Away
                        AxtremusA Away
                        Axtremus
                        wrote on last edited by
                        #23

                        @xenon said in SALT and mortgage deductions:

                        Mortgage deduction applies for debt up to $750k.

                        I am quite OK with capping mortgage interest deduction at certain level. I can understand allowing mortgage interest deduction to promote home ownership, but I see no point in subsidizing MacMansions.

                        1 Reply Last reply
                        • jon-nycJ Offline
                          jon-nycJ Offline
                          jon-nyc
                          wrote on last edited by
                          #24

                          The mortgage interest deduction should be full on eliminated.

                          You were warned.

                          RenaudaR 1 Reply Last reply
                          • jon-nycJ jon-nyc

                            @renauda

                            Yep. Its a relatively modest house too. 2400 sq ft on 1/3 acre lot.

                            It seems outrageous (and it is), but most people moving here from the city are giving up city income tax and private school tuition in exchange, so its a deal. (property taxes in the city are quite low)

                            If I lived over the border in CT it would be half for the same house. But the commute to the city would be longer.

                            RenaudaR Offline
                            RenaudaR Offline
                            Renauda
                            wrote on last edited by
                            #25

                            @jon-nyc said in SALT and mortgage deductions:

                            Yep. Its a relatively modest house too. 2400 sq ft on 1/3 acre lot.

                            About the same as our house; a 2700 sq ft two storey with developed basement and double detached garage on a 150 x 60 ft lot. Mature neighborhood.

                            Elbows up!

                            1 Reply Last reply
                            • jon-nycJ jon-nyc

                              The mortgage interest deduction should be full on eliminated.

                              RenaudaR Offline
                              RenaudaR Offline
                              Renauda
                              wrote on last edited by Renauda
                              #26

                              @jon-nyc said in SALT and mortgage deductions:

                              The mortgage interest deduction should be full on eliminated.

                              Canada has never had such a deduction on residential properties. We also manage just fine to buy houses and pay out mortgages without too much undue stress in its absence. I wouldn't want such a deduction introduced either.

                              Elbows up!

                              1 Reply Last reply
                              • jon-nycJ Offline
                                jon-nycJ Offline
                                jon-nyc
                                wrote on last edited by
                                #27

                                It’s really a bank subsidy.

                                The older folks here will remember when all interest was deductible here, even credit card and auto. It was a big banking subsidy.

                                It’s not even a subsidy for homeownership, it’s a subsidy for “home borrowership”.

                                You were warned.

                                George KG RenaudaR 2 Replies Last reply
                                • jon-nycJ jon-nyc

                                  It’s really a bank subsidy.

                                  The older folks here will remember when all interest was deductible here, even credit card and auto. It was a big banking subsidy.

                                  It’s not even a subsidy for homeownership, it’s a subsidy for “home borrowership”.

                                  George KG Offline
                                  George KG Offline
                                  George K
                                  wrote on last edited by
                                  #28

                                  @jon-nyc said in SALT and mortgage deductions:

                                  The older folks here will remember when all interest was deductible here,

                                  All interest?

                                  I remember when all taxes were deductible. I used to keep track of taxes on my utility bills (phone, heat, etc) and claim that deduction.

                                  "Now look here, you Baltic gas passer... " - Mik, 6/14/08

                                  The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.

                                  jon-nycJ 1 Reply Last reply
                                  • jon-nycJ jon-nyc

                                    @lufins-dad said in SALT and mortgage deductions:

                                    The Mortgage Interest Deduction is still there,

                                    It’s sorta there. They cap it at 10k. My property taxes are almost 35k. I have no mortgage, so unless my charitable giving is north of 14k I don’t itemize.

                                    Someone in my neighborhood with a big mortgage would have gotten hit even harder. (They capped that too).

                                    JollyJ Offline
                                    JollyJ Offline
                                    Jolly
                                    wrote on last edited by
                                    #29

                                    @jon-nyc said in SALT and mortgage deductions:

                                    @lufins-dad said in SALT and mortgage deductions:

                                    The Mortgage Interest Deduction is still there,

                                    It’s sorta there. They cap it at 10k. My property taxes are almost 35k. I have no mortgage, so unless my charitable giving is north of 14k I don’t itemize.

                                    Someone in my neighborhood with a big mortgage would have gotten hit even harder. (They capped that too).

                                    Move to Florida.😄

                                    “Cry havoc and let slip the DOGE of war!”

                                    Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton

                                    JollyJ 1 Reply Last reply
                                    • JollyJ Jolly

                                      @jon-nyc said in SALT and mortgage deductions:

                                      @lufins-dad said in SALT and mortgage deductions:

                                      The Mortgage Interest Deduction is still there,

                                      It’s sorta there. They cap it at 10k. My property taxes are almost 35k. I have no mortgage, so unless my charitable giving is north of 14k I don’t itemize.

                                      Someone in my neighborhood with a big mortgage would have gotten hit even harder. (They capped that too).

                                      Move to Florida.😄

                                      JollyJ Offline
                                      JollyJ Offline
                                      Jolly
                                      wrote on last edited by Jolly
                                      #30

                                      @jolly said in SALT and mortgage deductions:

                                      @jon-nyc said in SALT and mortgage deductions:

                                      @lufins-dad said in SALT and mortgage deductions:

                                      The Mortgage Interest Deduction is still there,

                                      It’s sorta there. They cap it at 10k. My property taxes are almost 35k. I have no mortgage, so unless my charitable giving is north of 14k I don’t itemize.

                                      Someone in my neighborhood with a big mortgage would have gotten hit even harder. (They capped that too).

                                      Move to Florida.😄

                                      Or Louisiana.

                                      Nice cottage, close to LSU, and your property taxes would be considerably less....

                                      https://www.zillow.com/homedetails/498-S-Lakeshore-Dr-Baton-Rouge-LA-70808/66265727_zpid/

                                      alt text

                                      “Cry havoc and let slip the DOGE of war!”

                                      Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton

                                      George KG L 2 Replies Last reply
                                      • JollyJ Jolly

                                        @jolly said in SALT and mortgage deductions:

                                        @jon-nyc said in SALT and mortgage deductions:

                                        @lufins-dad said in SALT and mortgage deductions:

                                        The Mortgage Interest Deduction is still there,

                                        It’s sorta there. They cap it at 10k. My property taxes are almost 35k. I have no mortgage, so unless my charitable giving is north of 14k I don’t itemize.

                                        Someone in my neighborhood with a big mortgage would have gotten hit even harder. (They capped that too).

                                        Move to Florida.😄

                                        Or Louisiana.

                                        Nice cottage, close to LSU, and your property taxes would be considerably less....

                                        https://www.zillow.com/homedetails/498-S-Lakeshore-Dr-Baton-Rouge-LA-70808/66265727_zpid/

                                        alt text

                                        George KG Offline
                                        George KG Offline
                                        George K
                                        wrote on last edited by
                                        #31

                                        @jolly taxes are $8900???

                                        DaFuq?

                                        "Now look here, you Baltic gas passer... " - Mik, 6/14/08

                                        The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.

                                        LuFins DadL 1 Reply Last reply
                                        • George KG George K

                                          @jon-nyc said in SALT and mortgage deductions:

                                          The older folks here will remember when all interest was deductible here,

                                          All interest?

                                          I remember when all taxes were deductible. I used to keep track of taxes on my utility bills (phone, heat, etc) and claim that deduction.

                                          jon-nycJ Offline
                                          jon-nycJ Offline
                                          jon-nyc
                                          wrote on last edited by
                                          #32

                                          @george-k said in SALT and mortgage deductions:

                                          @jon-nyc said in SALT and mortgage deductions:

                                          The older folks here will remember when all interest was deductible here,

                                          All interest?

                                          I remember when all taxes were deductible. I used to keep track of taxes on my utility bills (phone, heat, etc) and claim that deduction.

                                          86 tax bill removed deductibility of 'personal interest'

                                          Screen Shot 2021-02-03 at 6.53.04 PM.png

                                          You were warned.

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