Here is another description of the “extension” of the tax bills. Bascially a lot more of what politicians are really good at, nothing. But, is it really good for the economy and country? Tough call. http://www.dsnews.com/articles/from-fiscal-cliff-to-mudslide-2013-01-04
What is the definition of fiscal? Webster’s dictionary says fiscal means “of or pertaining to the public treasury or revenues.” When the President talks about fiscal policy, the President is talking about how the federal government will spend tax revenue. So, what is the fiscal cliff? Based on current federal government policy, laws will go [...]
The mortgage interest deduction sacred cow is back on the chopping block and we should all be grateful. Originally created to encourage homeownership, the mortgage interest deduction now only serves to encourage indebtedness. This mortgage interest deduction has made the cost of shelter fifteen percent higher for all of us. Every single one of us, [...]
There is a rumor going around that, instead of selling your primary residence now, you can rent it out for nine months first, declare it an investment property, and then deduct the entire capital loss from your income on your taxes.
The funny part is that if we did eliminate the mortgage interest deduction and prices fell 20 percent, new buyers would need a smaller mortgage, and we’d all pay less in property taxes. So does this deduction really help homeowners? Or does it primarily benefit lenders and tax collectors? I believe it’s the later.
Imagine the perpetual loan, a loan that no matter what you do, you can never pay off. To help conceptualize the idea, think of it as a perpetual interest-only loan in which you are forbidden to completely pay off principal.
As preposterous as that deal may sound, it is highly likely you are in one.
John Burns makes frequent trips to Washington, and he has been involved in the meetings and negotiations on this issue. If he is worried about what congress might do, there is genuine reason for concern. It appears the commission may make a recommendation to reduce the deduction limit.