I was getting outbreaks every few months. Then I read that a lack of B vitamin can trigger a cold sore. After reading that, I started taking an over the counter multi-vitamin (Centrum or generic). Now I only get an outbreak once or twice a year. When that happens, I can count on my acyclovir!
Why, why, why is the assumption always that it is a couple who owns a home? I am a single person who has owned (first a condo, then bought up to a single family home 12+ years ago) for over 20 years. With a single income, the deduction makes a large difference on my taxes each year, enough to push me into itemizing over taking the standard deduction. I did not buy a home just to get the mortgage deduction, but it has certainly helped me keep it over the past few years with a job loss and then a new job at a lower salary. While I could see this being taken away to raise more money for the government (whether people want that or not - the politicians seem to be increasingly out of touch with their constituents), doing so when the economy is in such bad shape seems like a terrible idea.
I use Amazon mostly due to their cloud drive and being able to re-download your music any time. I own some CD's but I haven't purchased a CD in over 15 years.
I don't get a deduction since my house is paid off. However, I do know that the net benefit of it isn't worth much. I would rather have a lower payment and no deduction.
David, what you're saying is true. A lot of the times the mortgage interest deduction pushes people into itemizing instead of taking the standard deduction. However, that's a point that a lot of people don't seem to understand and they believe that what they are saving is whatever their tax rate multiplied by the mortgage interest. Suppose that you're a married couple and you used to take the standard deduction of $11,400. Now this theoretical couple buys a house and the mortgage interest is $7000 for the first yeaar. Now this mortgage interest deduction pushes their itemized deduction to $13,000. They are actually only an extra tax benefit of (13,000 - 11,400) * their tax rate, not $7000 * their tax rate. I think a lot of people don't realize that their mortgage interest tax benefit is smaller than they think.
@WatchingMarcitz Oh, also, you're deduction from my note was wrong. WITH the credit my rent vs. own ratio is equal right now in this current point in time. WITHOUT the credit, owning is phenomenally more expensive. To the tune of about $300/mo plus about $100/mo insurance. So $400/mo more a month than if I was renting something equivalent.
No brainer for me to walk away should the credit end.
@WatchingMarcitz Your point is too vague. This value I'm currently at is in THIS market at THIS point in time in THIS particular location I live. If you go back just a year, everything was different, and the year before that even more so. The data point you're referring to is not a standard, so you can't scientifically deduce much from it.
Other than to say that the last thing we need is another incentive for people to walk away from their homes. THAT is my point. We are where we are, here in this real world, which operates differently than a textbook.
Most people in their 20s would benefit from a home with respect to their taxes. My mortgage payment including escrow is substantially less than if I was trying to rent the same house. In addition for most individuals with one w-2 job who purchase a home, the mortgage interest is enough of a deduction on the schedule A to push you into itemizing rather than the standard deduction. You're forgetting that taxes paid like the amount that gets withheld on your w-2 goes on there so having that deduction does help homeowners most of the time. I know I'd like to have it for as long as I can!
I still like to have the hard CDs for my favorite albums. That way I have a hard backup of my music if my hard drive crashes. But I buy a few single songs on Amazon.
I generally buy through Amazon or iTunes, but I also get music from up-and-coming artists for free or name your own price through bandcamp, noisetrade, and downplayer.
I haven't bought anything in a long time, but at garage sales, etc. I still prefer CDs, but am slowly gravitating my collection to itunes. I usually find new music through Pandora.
Exactly. You made a rational decision based on your own internal needs (and for that you should be applauded). This also explains why the MITD should go away. You are a true "home owner" and not a "home loaner/speculator" who is just doing it for financial reasons. The government shouldn't subsidize personal desire and people should have earn the right to express their personal desires.
Nice data point. What you have said is that the value of your house (without the deduction) means that it costs the same to rent vs own your house. That is actually how an efficient real-estate market works and that shows why the MITD is bad. Your house is subsidized by the government to a below efficient price and the bankers are the ones who get the subsidy. Basically you are paying a tax to the banks the the government is paying you back for.
Uhm technically the country was NOT founded on freedom from taxation BUT actually freedom from "taxation without representation." The founding fathers (and the country at large) had NO PROBLEM with taxation they just didn't want it to be spent without the input of the people who were paying the taxes.
That is already addressed in the article. The issue Craig is talking about isn't free stuff where the "free" cost is essentially paid for by the cost of the product purchase, but cases in which people might technically qualify for discounts or freebies, but don't feel quite right about claiming them because they could technically afford the items anyway.
I was getting outbreaks every few months. Then I read that a lack of B vitamin can trigger a cold sore. After reading that, I started taking an over the counter multi-vitamin (Centrum or generic). Now I only get an outbreak once or twice a year. When that happens, I can count on my acyclovir!
Also, I already 'like' Wise Bread on Facebook. Thanks!
I would use the gift card to go toward paying for a Kindle. I've been doing surveys and other things to save up money for it!
I buy my music on iTunes.
Why, why, why is the assumption always that it is a couple who owns a home? I am a single person who has owned (first a condo, then bought up to a single family home 12+ years ago) for over 20 years. With a single income, the deduction makes a large difference on my taxes each year, enough to push me into itemizing over taking the standard deduction. I did not buy a home just to get the mortgage deduction, but it has certainly helped me keep it over the past few years with a job loss and then a new job at a lower salary. While I could see this being taken away to raise more money for the government (whether people want that or not - the politicians seem to be increasingly out of touch with their constituents), doing so when the economy is in such bad shape seems like a terrible idea.
I use Amazon mostly due to their cloud drive and being able to re-download your music any time. I own some CD's but I haven't purchased a CD in over 15 years.
I buy my music From a website called gomusicnow.com. it's great! You can get whole albums for $1.29!
I don't buy it I listen to the radio or I listen to what I want on youtube it has saved me buckets of money
all on itunes. superior listenability when they switch to the cloud!
I don't get a deduction since my house is paid off. However, I do know that the net benefit of it isn't worth much. I would rather have a lower payment and no deduction.
David, what you're saying is true. A lot of the times the mortgage interest deduction pushes people into itemizing instead of taking the standard deduction. However, that's a point that a lot of people don't seem to understand and they believe that what they are saving is whatever their tax rate multiplied by the mortgage interest. Suppose that you're a married couple and you used to take the standard deduction of $11,400. Now this theoretical couple buys a house and the mortgage interest is $7000 for the first yeaar. Now this mortgage interest deduction pushes their itemized deduction to $13,000. They are actually only an extra tax benefit of (13,000 - 11,400) * their tax rate, not $7000 * their tax rate. I think a lot of people don't realize that their mortgage interest tax benefit is smaller than they think.
@WatchingMarcitz Oh, also, you're deduction from my note was wrong. WITH the credit my rent vs. own ratio is equal right now in this current point in time. WITHOUT the credit, owning is phenomenally more expensive. To the tune of about $300/mo plus about $100/mo insurance. So $400/mo more a month than if I was renting something equivalent.
No brainer for me to walk away should the credit end.
@WatchingMarcitz Your point is too vague. This value I'm currently at is in THIS market at THIS point in time in THIS particular location I live. If you go back just a year, everything was different, and the year before that even more so. The data point you're referring to is not a standard, so you can't scientifically deduce much from it.
Other than to say that the last thing we need is another incentive for people to walk away from their homes. THAT is my point. We are where we are, here in this real world, which operates differently than a textbook.
Most people in their 20s would benefit from a home with respect to their taxes. My mortgage payment including escrow is substantially less than if I was trying to rent the same house. In addition for most individuals with one w-2 job who purchase a home, the mortgage interest is enough of a deduction on the schedule A to push you into itemizing rather than the standard deduction. You're forgetting that taxes paid like the amount that gets withheld on your w-2 goes on there so having that deduction does help homeowners most of the time. I know I'd like to have it for as long as I can!
I still like to have the hard CDs for my favorite albums. That way I have a hard backup of my music if my hard drive crashes. But I buy a few single songs on Amazon.
I generally buy through Amazon or iTunes, but I also get music from up-and-coming artists for free or name your own price through bandcamp, noisetrade, and downplayer.
I haven't bought anything in a long time, but at garage sales, etc. I still prefer CDs, but am slowly gravitating my collection to itunes. I usually find new music through Pandora.
Exactly. You made a rational decision based on your own internal needs (and for that you should be applauded). This also explains why the MITD should go away. You are a true "home owner" and not a "home loaner/speculator" who is just doing it for financial reasons. The government shouldn't subsidize personal desire and people should have earn the right to express their personal desires.
Nice data point. What you have said is that the value of your house (without the deduction) means that it costs the same to rent vs own your house. That is actually how an efficient real-estate market works and that shows why the MITD is bad. Your house is subsidized by the government to a below efficient price and the bankers are the ones who get the subsidy. Basically you are paying a tax to the banks the the government is paying you back for.
Uhm technically the country was NOT founded on freedom from taxation BUT actually freedom from "taxation without representation." The founding fathers (and the country at large) had NO PROBLEM with taxation they just didn't want it to be spent without the input of the people who were paying the taxes.
Mainly via iTunes, though I still try to purchase the CD if it is an artist I really like.
I use Amazon.com.
Radio or UTube usually.
I liked you on facebook and tweeted!
http://twitter.com/#!/mictsu613/status/103530615525216258
That is already addressed in the article. The issue Craig is talking about isn't free stuff where the "free" cost is essentially paid for by the cost of the product purchase, but cases in which people might technically qualify for discounts or freebies, but don't feel quite right about claiming them because they could technically afford the items anyway.