Tax writeoff: $1,000,000 is the max
There's something new in the current real estate situation, something few people are talking about. In a place like Danville or Alamo, most homes are now priced over a million dollars. But the IRS says you can only write off the interest on the first million dollars of a home loan. Thus, if you buy a three million dollar house today, you can only write off the interest on the first million. Back in the '90s, most homes cost below one million so the write-off was more attractive.
posted by Dr. Jeff Lazarus MD at 12:13 AM
4 Comments:
I had forgotten this fact. Buying a house for the tax deduction is a fool's game.
My dad told me once, "You can go broke taking tax deductions...."
very interesting observation! The $1M tax cap is very scary. Another important factor that will very soon swing the entire real estate market around and there will be the long-predicted bubble burst. Just wait for all of those super rich guys backing off from expensive houses and moving into condos, because they can only write off the first 1M mortgage! You will see! The market is coming down hard! This is a total nightmare but most people are still in denial. Hehe
Wow beebs, I'm going to put that up on my wall of off-center but very wise quotes. That one is a goody.
whow those two web sites are super commercial. Kind of a web-realtor on steroids. Brrr!
By the way I just saw Larry Ellison in a U-haul truck. I guess he is moving to a townhome because of the tax cap thing.
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