Taxpayer's Home EQUITY Deduction?

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Provide an option that allows homeowners a tax deduction for the equity they have in their principle residence. Take the assessed value of the home and subtract the mortgage balance, if any, to get a net equity not to exceed $350,000. Multiply this by 5% to get the amount of the deduction.

Benefits: 1) Encourage people to stay in their homes and contribute to the stability of their communities and, 2) put more dollars in taxpayers pockets that the middle class will spend to stimulate the economy.

Proveloper's picture
Proveloper
Joined:
Jul. 31, 2007 4:01 pm

Comments

huh??

Soo let me see... I own a multi-million dollar home with no mortgage. Own it lock-stock-and-barrel. It's just my other house mind you. I don't live in it full time. Only when it suits me.

So I get to deduct 350,000*0.05= $17.5K on top of everything else. Cool Where as the proletariat who is working his poor little hiney off who can barely afford a $200,000 home, mortgaged to the hilt gets $500, if that, in deduction. How is this fair?

Disclaimer: I may or may not own mutiple houses and may or may not have my house(s) paid off in full.

Just making a point.

smilingcat
Joined:
Sep. 23, 2010 9:14 am

So, more money for the rich is the idea to encourage people to get rich.

Phaedrus76's picture
Phaedrus76
Joined:
Sep. 14, 2010 8:21 pm

1. The original post indicates that the proposal only applies to one's PRINCIPLE residence.

2. It could just as well be the case that there is a retiree on a fixed income whose residence is owned free and clear with an assessed value of $200,000. If they are in the 20% tax bracket, a $10,000 deduction would put $2,000 in their pocket that they could spend in their community.

3. I would also not be opposed if a one-time use of IRA funds for a down payment on a principle residence were allowed. This would encourage people to save and help reduce their taxable income.

Proveloper's picture
Proveloper
Joined:
Jul. 31, 2007 4:01 pm

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