Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

Re:Among the Tax Bill’s Biggest Losers: High-Income, Blue St... by SmellTheGlove on Tuesday December 05, 2017 @03:41PM (#15855642)

I'm approaching from the opposite situation - I have a paid off house in my lower cost of living state and am relocating to the Bay Area for a job next month. I will not be selling my current home, nor buying in the Bay Area, until the fallout of this tax bill is known. At the very least, housing prices may come down where I'm going, but likely not where I'm moving from (since the mortgage interest deduction on most homes around here will wash out with the doubling of the standard deduction, but even if it does, it's percentages of far smaller numbers comparatively). Meanwhile, it sounds like nothing's changing in what I'll be able to deduct as a landlord. At least, that's my thought.

That said, it's always been a little odd to me that we could deduct our mortgage interest and property taxes, but a renter cannot even though they're paying a good portion of that on our behalf.

[ Parent | on HN ]

Re:Among the Tax Bill’s Biggest Losers: High-Income, Blue St... by hcknwscommenter on Tuesday December 05, 2017 @03:51PM (#15855808)

"That said, it's always been a little odd to me that we could deduct our mortgage interest and property taxes, but a renter cannot even though they're paying a good portion of that on our behalf."

I'm not going to suggest that it is as simple as the following, but the underlying rationale is that the renter benefits from lower rent than it would otherwise be because the landlord has lower expenses.

[ Parent | on HN ]

Re:Among the Tax Bill’s Biggest Losers: High-Income, Blue St... by closeparen on Tuesday December 05, 2017 @04:11PM (#15856031)

Landlords don’t charge their own expenses + some fixed margin. They charge what the market will bear. Expensive blue state housing markets are at no risk of seeing rents fall below landlords’ costs.

[ Parent | on HN ]