Hi,
I’m wondering how the proposed changes to the tax laws with regard to not allowing this type of deduction…is going to affect real estate investing.
I realize this is a pretty general comment…was just wondering if someone has been following this more closely and/or is more attuned to this type of tax ramification.
Thanks,
-Mike
Hi1 I haven’t heard of this new law and it sounds quite disturbing. Perhaps it affects only owner-occupied property. If it applies to investment real estate as well, we’re all in trouble! That’s a sizable deduction when you have almost $1 million in mortgages as I do. The tax ramifications would be a lot of money no longer allowed to be deducted, which in turn means a higher tax consequence. I can’t imagine Congress would pass such a law for investment property. It’s what keeps our economy going!
You’re probably right…from the report that was presented on CNN, (or wherever I saw it), it seemed geared more toward owner-occupants.
I’d look into it more by doing some googling…but am just pressed with other things right now.
Still…even with it being owner-occupant focused…I was pretty shocked that this type of proposed legislation was making noticable headway.
-Mike
This “tax overhaul” comes up everytime it nears an election…the big ones with housing impacts are the “Flat Tax” where there are no deductions and everyone is taxed at the same percentage. The other is an elimination of income tax (and the IRS) all together in favor of a “value added tax”…like a national sales tax that you pay on every purchase…these are popular in Europe. Last I knew, everytime you bought anything in Germany, you paid like 16 or 17% VAT…
Keith
Hi Keith,
Thanks for “your take” on this.
Guess this report raised my ears more than normal…being the (apprehensive) newbie I am… 
-Mike