06-19-2015, 03:08 PM
(06-19-2015, 02:57 PM)fredtoast Wrote: When did poor people get the same mortgage deduction as millionaires? You want a flat tax rate, but you also want to give people with more expensive houses a bigger tax break? Seems like a contradiction to me.
What does owning a house have to do with paying your fair share of taxes?
The interest deduction is capped at $1.2M, I believe. If, over 30 years, prices double the guy with a $500k house can exclude his entire $500k gain, while the other will be hit with a net capital gain of $700k. So it's still pretty progressive.
There has been talk over the years of lowering the cap to $400k.