Mortgage Interest Deduction

[champu 1]

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Why would anyone pay a $1,000 a month for a $100 deduction? Yea, I get it but if given the choice, I would much rather own my home outright.

the numbers are a bit different in San Francisco, and for those at the early part of their 30 year loan. It would be paying $1000 to get a $900 deduction, would might translate to $700 if and only if they can actually itemize. Odds are this isn't enough, though, and they end up using the standard deduction or just a bit more, and get the $100 deduction as you suggest.

The California state income tax is high enough that if you're buying a place as a single filer, you're probably paying enough in CA income tax to get you close to the federal itemizing threshold just by itself. So you should be able to deduct almost all of the resulting interest and property taxes associated with the purchase.

But you're spot on in your other post. You don't keep a mortgage around (or do anything else for that matter) just so that you get a deduction. You just factor the deduction into your decision.

Making additional payments or not is a similar question as, "How much do I put down?" The answer depends on a lot of variables and is not always, "As much as you possibly can."

[kelpdiver 2]

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The California state income tax is high enough that if you're buying a place as a single filer, you're probably paying enough in CA income tax to get you close to the federal itemizing threshold just by itself. So you should be able to deduct almost all of the resulting interest and property taxes associated with the purchase.

nevermind that no one in the cities will be paying a $1000 mortgage on a recently purchased home.

This brings up the red v blue states issues when it comes to taxes. Californians suffer/enjoy a higher income and cost of living, and as a result pay substantially higher taxes then those in less urban states. Nothing in the tax code is indexed to cost of living. Removing the mortgage deduction also has a very unequal impact.

[kallend 2,027]

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The California state income tax is high enough that if you're buying a place as a single filer, you're probably paying enough in CA income tax to get you close to the federal itemizing threshold just by itself. So you should be able to deduct almost all of the resulting interest and property taxes associated with the purchase.

nevermind that no one in the cities will be paying a $1000 mortgage on a recently purchased home.

This brings up the red v blue states issues when it comes to taxes. Californians suffer/enjoy a higher income and cost of living, and as a result pay substantially higher taxes then those in less urban states. Nothing in the tax code is indexed to cost of living. Removing the mortgage deduction also has a very unequal impact.

You always have the option of moving to Hayward, Emeryville or San Leandro.

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The only sure way to survive a canopy collision is not to have one.

[kelpdiver 2]

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The California state income tax is high enough that if you're buying a place as a single filer, you're probably paying enough in CA income tax to get you close to the federal itemizing threshold just by itself. So you should be able to deduct almost all of the resulting interest and property taxes associated with the purchase.

nevermind that no one in the cities will be paying a $1000 mortgage on a recently purchased home.

This brings up the red v blue states issues when it comes to taxes. Californians suffer/enjoy a higher income and cost of living, and as a result pay substantially higher taxes then those in less urban states. Nothing in the tax code is indexed to cost of living. Removing the mortgage deduction also has a very unequal impact.

You always have the option of moving to Hayward, Emeryville or San Leandro.

And how much cheaper do you think the housing is there? Anything in the inner rim of the Bay is not cheap, and even the next ring over (Walnut Creek->Pleasanton) is pricy.

A "cheap" 250k mortgage still runs you $16xx/month at the ~5% rate.

[kallend 2,027]

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The California state income tax is high enough that if you're buying a place as a single filer, you're probably paying enough in CA income tax to get you close to the federal itemizing threshold just by itself. So you should be able to deduct almost all of the resulting interest and property taxes associated with the purchase.

nevermind that no one in the cities will be paying a $1000 mortgage on a recently purchased home.

This brings up the red v blue states issues when it comes to taxes. Californians suffer/enjoy a higher income and cost of living, and as a result pay substantially higher taxes then those in less urban states. Nothing in the tax code is indexed to cost of living. Removing the mortgage deduction also has a very unequal impact.

You always have the option of moving to Hayward, Emeryville or San Leandro.

And how much cheaper do you think the housing is there?.

Quite a bit, according to Trulia. There are 3 neighborhoods in Hayward where the median sales prices in the last 3 months are
No-one forces you to live in the high priced parts of the Bay Area, that's is your choice entirely.

You could even move to Arkansas.

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The only sure way to survive a canopy collision is not to have one.

[kelpdiver 2]

as always, the point escapes you.

But the logic is poorer than ever. If everyone choose to live in Hayward next to 880, then the prices there would go up. You're not going to lower the average price of housing the bay area with free choice to live in the shitty parts. Same as with Chicago.

[Plover 0]

Once again the moderators here have chosen to delete a bunch of perfectly innocent messages. So now it's time for some payback once again. Tsk tsk. It's too bad they continue this program of self-induced punishment. It would be so easy if they just left those innocent messages alone, and public. But, when they fucka wit me, I fucka wit them. So here we go again.