Deduct Mortgage Interest (by John [WI]) Dec 3, 2017 8:27 AM|
Deduct Mortgage Interest (by Richard [MI]) Dec 3, 2017 8:33 AM
Deduct Mortgage Interest (by Moshe [CA]) Dec 3, 2017 9:41 AM
Deduct Mortgage Interest (by Salernitana [CA]) Dec 3, 2017 10:06 AM
Deduct Mortgage Interest (by Kyle [IN]) Dec 3, 2017 2:01 PM
Deduct Mortgage Interest (by myob [GA]) Dec 3, 2017 2:27 PM
Deduct Mortgage Interest (by Alan [CA]) Dec 3, 2017 5:12 PM
Deduct Mortgage Interest (by nhsailmaker [NH]) Dec 4, 2017 4:23 AM
Deduct Mortgage Interest (by Ray-N-Pa [PA]) Dec 7, 2017 6:30 AM
Deduct Mortgage Interest (by David [MI]) Dec 7, 2017 6:39 AM
Deduct Mortgage Interest (by nhsailmaker [NH]) Dec 8, 2017 4:33 AM
Deduct Mortgage Interest (by John [WI]) Posted on: Dec 3, 2017 8:27 AM
What are your thoughts on how this new tax plan will impact us with regards to the Mortgage Interest Deduction?
I've heard all kinds of things in the proposed legislation and want to learn about how it impacts us down the road? Here are a couple things I've heard but would like your input if this is correct and how it would be interpreted for us landlords and those planning to stay in the game long range (buy and hold...not flippers or short term rentals):
-The ability to deduct mortgage interest is going from anything udner 1 million down to mortgages under $500,000 (does this apply to commercial mortgages as well?)
-Will drive house prices lower, in the 10-15% range. If I decide to sell one of our single family 200k homes, does this apply...or are falling prices only going to hit homes with mortgages above 500k?
-This doesn't apply to those who already have current mortgages, only going forward?
-Mortgages interest deduction on second homes goes away. We have more than one mortgage. Hmm, this part could definitely be bad depending on how it goes!
-Landlords are not impacted and can still deduct full mortgage interest deduction. I've seen this kind of statement made, but not much talk about details. What are the specifics here!? I've read that those who own second homes (vacation property) can revert back to taking advantage of the mortgage interest deduction IF they rent it out...thereby making them landlords. Would these be the "landlords not impacted" they are referring to, or is there actually some loopholes for those of us regular landlords in non vacation cities, who have a few properties and actually rent them out 52 weeks a year? Again, I'd love to know any specifics because I haven't heard much detailed discussion.
-Falling home prices may mean falling rents down the road. I don't know if I agree with that one, but I've heard it said. Ideas? --96.42.xx.xx
Deduct Mortgage Interest (by Richard [MI]) Posted on: Dec 3, 2017 8:33 AM
Till the final version goes through, it just speculation. Too many potential changes.
Whatever happens, we will adjust to it. --23.121.xx.xxx
Deduct Mortgage Interest (by Moshe [CA]) Posted on: Dec 3, 2017 9:41 AM
The mortgage interest deductions relate to deducting interest on mortgages for your own home, and perhaps (as under the present tax code), a second home.
It does NOT apply to deduction of mortgage interest as an Schedule E expense for calculation of profit or loss of a business property.
Deduct Mortgage Interest (by Salernitana [CA]) Posted on: Dec 3, 2017 10:06 AM
Thanks, Moshe, for pointing out the change clearly and for your other post about administrations.
@John, would it be applicable for loans above $500k and not under as noted?
I think that many at least in the San Francisco Bay Area are probably a bit worried about the changes since a 20% down payment on 98% of homes for sale requires a loan well over $500k. There seems to be many buyers paying well over $100k for asking on fixer properties in even once class D and present class C or B neighborhoods so if they're not coming in mostly with cash, they will be affected.
Deduct Mortgage Interest (by Kyle [IN]) Posted on: Dec 3, 2017 2:01 PM
Rental property mortgage interest will remain deductible on Schedule E. Personal residence mortgage interest will have new limitations on Schedule A. There may be an impact on the sales prices of some single family homes which previously would have been financed with mortgages that will not have the same interest deductions going forward, but it isn't predictable what the price drop will be or if it will even happen. We can expect more changes to the bill before it passes. --73.102.xxx.xx
Deduct Mortgage Interest (by myob [GA]) Posted on: Dec 3, 2017 2:27 PM
you have no knowledge of what the 1M is about. It's cmulitive life time.
side note about SFO they have so much more to worry about than interest allowed? after last weeks verdict. --99.103.xxx.xxx
Deduct Mortgage Interest (by Alan [CA]) Posted on: Dec 3, 2017 5:12 PM
What Richard (MI) said. --73.158.xxx.xxx
Deduct Mortgage Interest (by nhsailmaker [NH]) Posted on: Dec 4, 2017 4:23 AM
My accountant said regardless of what passes the business mortgage interest will always be an expense and that is why we are paying down our principal residence mortgage. In addition he said out business mortgage at 4.5 % in reality is a 3.75 % mortgage after taxes so the residence at 3.725% is getting the pay down. --24.34.xx.xxx
Deduct Mortgage Interest (by Ray-N-Pa [PA]) Posted on: Dec 7, 2017 6:30 AM
Where I buy and sell now, you don't get that many homes over $500,000 unless there is lake front lot involved with it, so the impact here will be minimal. For folks along the coast, it will have some impact on home values......but did you buy your home for the interest write off? --24.101.xxx.xxx
Deduct Mortgage Interest (by David [MI]) Posted on: Dec 7, 2017 6:39 AM
Nhsailmaker, not true . There was one iteration of the bill where it was proposed to disallow deduction of business interest. So no, it's not a guarantee that we will be able to deduct. --166.137.xxx.xxx
Deduct Mortgage Interest (by nhsailmaker [NH]) Posted on: Dec 8, 2017 4:33 AM
poor David - you really need to get better at inputting good information into your daily consumption of knowledge. We all do - some are better than others --24.34.xx.xxx