Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Standard deduction
Old 06-25-2007, 02:07 PM   #41
Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 1,307
Standard deduction

I think it depends on what your state taxes are like (and your income). I live in Minnesota, and my state income taxes and property taxes combined (both are deductible) are more than the standard deduction, so my morgage interest deduction is a real benefit over the standard deduction.

This would probably not be the case if I lived in Mississippi.

Originally Posted by Nords View Post
Once the standard deduction is figured in, I don't think there's much of a tax advantage to having a mortgage.

Reducing the mortgage interest rate by one's marginal tax bracket is not what's actually being "saved", and the concept behind the math is as screwed up as that "80% of pre-retirement income" thumbrule that journalists are always blathering about.

But that interest deduction has sure guided a lot of home-buying behavior, as well as all those heart-warming FHA commercials... so as a government subsidy I suspect that it actually delivers a whole lot of bang for the forsaken tax revenue.

Hamlet is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 04:38 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.