- Oct 22, 2006
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So, I was thinking we'd finally be able to start deducting mortgage interest since we've owned a home since June. Up until now, the only "interest" deduction I had was student loan interest.
Everybody in the world told me "You'll be able to deduct mortgage interest come tax time." I did a little googling, and it looked great.
Except now, I REALIZE THAT IT IS ONLY DEDUCTIBLE IF YOU ITEMIZE YOUR DEDUCTIONS. I thought it would be like our student loan interest where it was deductible along with the standard deduction. I assumed it was this way because EVERYONE was saying it was deductible. Coworkers, parents, real estate agent, mortgage lender. A couple of Joe Blow middle class coworkers without kids (we don't have any either) were saying "Oh, you'll get such a tax break with the new house).
And since we don't even have a full year of interest, we can't even take advantage of real estate taxes paid, closing costs, and other fees that I had planned on deducting.
After a bit of googling, it looks like the government had floated the idea of turning the interest deduction into a mortgage interest tax credit. Any updates to this?
I've got nobody to blame but myself, but I'm just shocked that everyone around me said it was deductible, when it looks like, after googling, nobody with ~$150k houses actually benefits from this.
Everybody in the world told me "You'll be able to deduct mortgage interest come tax time." I did a little googling, and it looked great.
Except now, I REALIZE THAT IT IS ONLY DEDUCTIBLE IF YOU ITEMIZE YOUR DEDUCTIONS. I thought it would be like our student loan interest where it was deductible along with the standard deduction. I assumed it was this way because EVERYONE was saying it was deductible. Coworkers, parents, real estate agent, mortgage lender. A couple of Joe Blow middle class coworkers without kids (we don't have any either) were saying "Oh, you'll get such a tax break with the new house).
And since we don't even have a full year of interest, we can't even take advantage of real estate taxes paid, closing costs, and other fees that I had planned on deducting.
After a bit of googling, it looks like the government had floated the idea of turning the interest deduction into a mortgage interest tax credit. Any updates to this?
I've got nobody to blame but myself, but I'm just shocked that everyone around me said it was deductible, when it looks like, after googling, nobody with ~$150k houses actually benefits from this.