New tax bill - No more 2nd home Mortgage interest deduction?

showkey

Well-known member
Sprinter RV is a toy ( so are second homes) ............do not borrow money for toys or second homes so interest deduction is moot ...........:cheers:
 

autostaretx

Erratic Member
I'm curious to know if it would effect a commercial property.
If you previously claimed it as a personal deduction on a Schedule A: yes.
(line 10 or 11 in 2016's form)

If you previously claimed it as a business deduction (Sched C or whatever): no.

If you claimed it on Schedule A's line 14 (investment interest)... i have no idea.

--dick
p.s. back in the 1970's, you could file your federal taxes on a form the size of a postcard.
The 1040A (Short Form) was the size of a "computer card" (if i recall correctly).
It was for the simplest case: wages, limited bank interest, standard deduction, no credits (etc).
 
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davisdave

2005 140 tall passenger
We need to get speculation out of housing. F AirBnB "investors"...destroying neighborhoods worldwide and making housing unafordable for regular folks.
 

sikwan

06 Tin Can
I think it's moratorium --> forbearance --> limited supply + low interests rate + regulation = unaffordability. Regular folks just need to wait for the inevitable. Don't feed into the frenzy.

EDIT: Yes, I know it's a 3 year old thread rehashed by a spammer post that was deleted before davisdave's post.
 

elemental

Wherever you go, there you are.
Whether only a primary or more than just the primary mortgage interest expense should be allowed as a deduction against income depends upon one's perspective of how much like a business our personal lives should be from a tax point of view. A business is allowed to deduct the interest expense from earnings because those interest expenses are costs to doing business. Why, when we calculate our own personal tax debt (based on income) aren't we allowed to deduct our costs to doing business. If I have to borrow money to buy a house, a vehicle, a second house, etc. - why can't I deduct all of those interest expenses?

The interest on my primary mortgage is deductible, but so is my capital gain on the asset I purchased - isn't this a double win? Yet on my second home purchase, where all of my gain will be taxable when I sell it, a big part of the cost of acquiring that asset (a loan) isn't deductible against my income?

I was originally going to argue that only the primary mortgage deduction should be allowed (and maybe not even that), but I seem to have talked myself out out it. What is the error to my logic?
 

sikwan

06 Tin Can
Yet on my second home purchase, where all of my gain will be taxable when I sell it,
I'm sure you already know that you can avoid this, but the main logic for all of this is whether you feel obligated to pay or keep more.
 

elemental

Wherever you go, there you are.
I'm sure you already know that you can avoid this, but the main logic for all of this is whether you feel obligated to pay or keep more.
I've only half-heartedly thought about buying a second house actually, so I haven't taken the time to fully understand all of the tax implications. I hate paying property taxes and upkeep on my primary residence!

There are portions of the individual income tax policies that seem one-sided to me, though, where income and gains are taxes but not all losses are allowed. Maybe I just haven't worked through all the math, though.
 

sikwan

06 Tin Can
Besides taxes, inflation is coming fast, if it's not already here, where debt will be the asset. It becomes fun once you understand the game. It's all a game.
 

Mike DZ

2016 View 24V (2015 3500)
Congress uses tax law to do social engineering - encouraging behavior they think is "good" for society. So home ownership is "better" for society than renting and striving to have enough resources to take out a loan for a second home is "good" as well - ergo tax breaks. Gambling losses can only be written off to equal winnings - because gambling is "bad". Similarly for business - we like this type of business and its "good" for the country - lets give them a tax break.

To return to a real postcard size return, Congress would need to give up their social engineering tool.
 

davisdave

2005 140 tall passenger
Congress uses tax law to help their globalist crony capitalist sponsors - encouraging behavior they think is "good" for their Wall St friends. So loan ownership is "better" for banks than renting and striving to have enough resources to take out a loan for a second home is "good" as well - ergo tax breaks. Gambling losses can only be written off if you work on Wall St - because they are doing "Gods work". Similarly for business - we like this type of business and its "good" for our masters - lets give them a tax break and a bail out.
There, fixed it for ya?:cheers:

I didnt even see that this was a zombie thread!
 
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Boxster1971

2023 Sprinter 2500 144wb AWD
Anyone concerned about the potential loss of a 2nd home mortgage interest deduction in the new tax bill (House)? Be it for your RV, boat or second home.

https://www.cnbc.com/2017/11/20/house-bill-chops-tax-break-for-rvs-and-boats.html
You guys latched onto a post from 2017!

That article only deals with the House version of the bill in 2017. I just checked with IRS and you can still deduct mortgage interest on second home if you use it and don't rent it out.
Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses) 5 | Internal Revenue Service (irs.gov)

Here is what RIVA the industry association says about it.
Taxes | RVIA
 

davisdave

2005 140 tall passenger
Sorry Mike, it was a joke. I dont see how to edit it. I thought what you said was funny. I thought my version was hilarious, and probably more true. To each his own:hugs:

Are you worried that my version will put you on the "list"? My intention was not to get you sent off to the "reeducation camp" for violating "newspeak".

You do have DZ in your handle, my bad.:cheers:
 

Mike DZ

2016 View 24V (2015 3500)
Sorry Mike, it was a joke. I dont see how to edit it. I thought what you said was funny. I thought my version was hilarious, and probably more true. To each his own:hugs:

Are you worried that my version will put you on the "list"? My intention was not to get you sent off to the "reeducation camp" for violating "newspeak".

You do have DZ in your handle, my bad.:cheers:
Delete your post or ask sys admin to do so.
 

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