Since we have no kids and we rent, we'd stand to gain if all deductions were eliminated, but the overall rates were reduced.
It would be nice if charitable contributions were tax deductible for everyone, but I don't think lack of tax deductibility influences our giving decisions too much.
I am going to be so pissed if the charitable deduction gets cut. That is all.
This would be the stupidest cut ever.
As of noon, the bloggers were saying that they would not cut the charitable deduction. If they eliminate both the mortgage interest deduction and the state/local taxes deduction, many people will no longer benefit from itemizing their taxes. This will effectively lose the charitable deduction because the charitable deduction only exists (right now) if you itemize.
A whole lot. We own 3 homes in the Bay Area and have no children.
How do you deduct interest from mortgages on 3 homes?
Right now, the rules do not limit the mortgage interest to one home. If you own multiple homes, you can deduct the mortgage interest from multiple homes.
How do you deduct interest from mortgages on 3 homes?
Right now, the rules do not limit the mortgage interest to one home. If you own multiple homes, you can deduct the mortgage interest from multiple homes.
I think it limits it to your main home and a second home that isn't primarily a rental home.
My financial picture would change a lot. We would no longer qualify to contribute to Roth IRAs. We'd owe thousands more in federal income tax.
If the rate was lowered at the same time deductions were eliminated we might break even-ish, but the Roth IRA thing would still be an issue.
FYI - IRA contribution income limits are based on your Modified AGI. Itemized deduction occur after that. Your ability to contribute to Roth IRAs would not be affected by a change like this. ETA, sorry, sometimesrunner beat me to it!
Are they still discussing cutting the child tax credit in half? I read about this somewhere but I haven't heard anything since. If this happened it would not make me very happy since we have 3 kids.
If mortgage and state were cut I would be quite unhappy and wold lose a couple thousand. If both of these happened I would be up a creek without a paddle. Yuck.
We'd pay thousands more in taxes. We would be pretty peeved if it was these were the only deductions cut but if it were part of comprehensive reform eliminating most or all deductions we wouldn't complain.
Are they still discussing cutting the child tax credit in half? I read about this somewhere but I haven't heard anything since. If this happened it would not make me very happy since we have 3 kids.
If mortgage and state were cut I would be quite unhappy and wold lose a couple thousand. If both of these happened I would be up a creek without a paddle. Yuck.
That is part of the fiscal cliff. Bush doubled the child tax credit, so if that is allowed to expire, it goes from $1000 today down to $500.
It wouldn't change my tax bill much, but I'd probably feel a lot better about my rate knowing high earning homeowners were also paying their fair 30%+
And it would slow down our house search dramatically.
:Y:
Actually, it would improve my financial picture because getting rid of the deduction would probably result in home values dropping, meaning we'll need less money to buy. It's for this reason I think it will never happen, so I'm not holding my breath.
It wouldn't change my tax bill much, but I'd probably feel a lot better about my rate knowing high earning homeowners were also paying their fair 30%+
And it would slow down our house search dramatically.
Actually, it would improve my financial picture because getting rid of the deduction would probably result in home values dropping, meaning we'll need less money to buy. It's for this reason I think it will never happen, so I'm not holding my breath.
Yeah that's true! Of course, going right over the fiscal cliff would probably also help our house-buying prospects here in DC, even without that change.
But instead of either of those two, I'll probably just end up with even higher rates. Yay.
It wouldn't change my tax bill much, but I'd probably feel a lot better about my rate knowing high earning homeowners were also paying their fair 30%+
And it would slow down our house search dramatically.
Actually, it would improve my financial picture because getting rid of the deduction would probably result in home values dropping, meaning we'll need less money to buy. It's for this reason I think it will never happen, so I'm not holding my breath.
I'm sorry, ESF...did you say something? Your pup is so adorable I can't focus on what you wrote.
Actually, it would improve my financial picture because getting rid of the deduction would probably result in home values dropping, meaning we'll need less money to buy. It's for this reason I think it will never happen, so I'm not holding my breath.
I'm sorry, ESF...did you say something? Your pup is so adorable I can't focus on what you wrote.