is there some new law coming out that You CANT Deduct Mortgage interest + property taxes???

Question

i read about this but dont know when it's coming out

Answer 1

Would you PLEASE let us know which country yo might be asking about please.

If UK, then a new one on me and I keep fairly well informed on legislation that would affect the buy2let market

Answer 2

Earlier this year in the US, there was a government commission that reviewed the existing tax law and made suggestions on changing it. The primary focus was to get rid of the alternative minimum tax. This is an alternative tax calculation system that pretty much did away with all itemized deductions, and in return the taxpayer is provided a larger standard deduction, and the tax rate is a fixed rate. This was implemented to do away with many deductions that the wealthy were able to use to reduce their tax liabilities and was intended to have the wealthy pay their fair share, so to speak. For every taxpayer, the regular tax and alternative minimum tax needs to be calculated side-by-side and the taxpayer has to pay the higher of the two. If the taxpayer is subjected to the alternative minimum tax, they are able to claim that as a credit in future years. However, as the past twenty years passed, and the regular tax brackets and deduction limits has been adjusted for inflation and the cost of living, the AMT did not. So for many middle class taxpayers, they have found that they are now subject to the alternative minimum tax.

So under much political pressure, the commission looked at doing away with the alternative minimum tax. However, how tax legislation works in the US is that when the federal government comes out with a tax law that reduces their tax revenue, they must offset it with additional tax revenue elsewhere, so that the tax revenue stream doesn't change. The commission had suggested that in order to pay for repealing the alternative minimum tax, it be finance by also repealing, or greatly reducing, the deduction for mortgage interest and property taxes. It was just a suggestion by the commission and is not law.

In reality, the possibility of Congress ever passing a bill that would do away with the mortgage interest and property tax deductions are about as good as the far right and far left ever agreeing on anything. With all of the emphasis they have given on encouraging individuals to become homeowners, this would be taking away the largest portion of deductions for the vast majority of taxpayers here in the US. Any senator or congressman who would let their name go on the record that they supported this, let alone vote for it, would be looking for a new job the next time they came up for re-election.

Answer 3

they are incorrect. own loan interest is charged with the help of the lender and has each thing to do with the non-public loan (debt) and not something to do with truthfully possession of the valuables (asset). sources tax is paid in accordance to who owns the asset and there they could have a ingredient. when you consider which you won't be in a position to legally the two deduct the completed quantity, why do not they only provide you the money that represents regardless of your tax reductions may well be? fee is the such as them and it quite is plenty greater handy.

Answer 4

In NY you can deduct mortagae interest + property taxes on the state level; not federal.

Answer 5

It was discussed but no legislation has been proposed or passed on this issue to date.

I think the American public would raise such a hue and cry that legislators are afraid to try it.

Answer 6

if you're talking about the US, there is very little chance of that happening for at least several years.