You can deduct your mortgage payment. Just not the property tax and state local tax obove 10 grand.
So the states with high local taxes don’t get to apply for the same grants or are not awarded the same grants?
It’s a fairer tax.
Just saying. Some states are more dependent on federal dollars than others.
There’s nothing fair about any of this. Fair doesn’t enter into it.
You mean like Utah where over 75% of the land is Federally owned and you can’t do anything on it? Can’t tax it, can’t build on it, can recreate on it . . .
Imagine if whatever state you live in was 75% owned by the federal government.
I thought mortgage interest and SALT were bundled together for the $10,000 limit?
Hopefully the doubled standard deduction will work out well for you. I think it might.
Seperate cape that effect only NEW mortgages issued after December 2017.
So if you had a mortgage before that date, old rules apply. Mortgage after that date, they cap the interest to equivalent of a 750,000 dollar loan. Example, you have a 1million dollar loan, you’d only be able to deduce what 75% of the interest on the loan ( number could be wrong here, but just as an example).
If you buy a home between now and 2026, you can deduct the interest on up to $750,000 in mortgage debt used to purchase or improve it as an itemized deduction. This cap affects home purchases made after December 14, 2017. Anyone who took out a mortgage on December 14 or earlier will be able to deduct interest on up to $1 million in debt, the old cap, for that home, even if they refinance to get a lower rate.
Only will effect people who buy homes in that 750,001 to 1 million price area. Prior to passage, the cap was 1 million. They just lowered the cap by half a million dollars.
So unless your home loan was 1 million + . . . you will see no change.
Ok. So we agree that it is not completely fair. Why should the higher income person pay more than the low income person? Why not vice-versa?
Nope, that’s something different. That’s just whether or not your mortgage interest is deductible, not how much you will be able to deduct.
Nothing was grandfathered as far as the $10,000 cap.
The 10 grand cap is ONLY state and local taxes you pay. Property tax, income tax, sales tax.
The 10k cap has NOTHING to do with mortgage interest.
Yeah…this is a good thing…just because you are alive doesnt give you the authority to use it…
What’s a good thing? That 3/4 of a state is owned by the Federal government? Really?
Yup. I was wrong.
I haven’t itemized in a few years since our mortgage interest dropped so low that I couldn’t scrape up enough deductions to bother with itemizing. I’m getting rusty.
Yes really? Did i studder?
What would your state look like if 75% of the land mass was off limits to development?
Pa would look like pa…so…trees…which is good…again just becuase you are alive doesnt mean you get to play with it…
Hmmm 2.1% of land in PA is federal land.
Something tell’s me you would be talking a different tune if that number were 50% or greater.
CA is 45% federal land. Are you trying to say that the higher percentage of Federally owned land reduces the amount of taxes the state collects?