Cohn: 'People don't buy homes because of the mortgage deduction'

OH REALLY!!!!

This is just how in touch with 'average' people this administrations leaders are.

White House National Economic Council Director Gary Cohn on Thursday pushed back against criticism that Republicans' tax plan could hurt the real-estate market, saying, "People don't buy homes because of the mortgage deduction."

thehill.com...

Don't know about you - but it was a huge consideration for me and others when buying a home.

Cohn goes on to 'tell us' just why we buy homes:

"The No. 1 reason why people buy homes is they're excited and optimistic about the economy,"

Cohn said during a White House press briefing. "They have a job today, they feel confident they're going to have a job tomorrow, and their kids are going to get a job and their spouse has a job."

The only time I've ever bit the tiniest bit excited about the economy and that had nothing to do with home ownership was during the early 90s - boy was I wrong. But, again it had nothing to do with my decision to buy a home.

This guy is a real piece of out of touch work.

Here's a simple explanation from the article about the effects of this tax 'plan' on the home mortgage deduction:

The GOP tax plan unveiled Wednesday would protect the mortgage interest deduction but would decrease the number of homeowners likely to claim it,

as the plan would nearly double the standard deduction.

Taxpayers can only claim the mortgage interest deduction if they itemize their deduction instead of taking the standard deduction.


Cohn said that the majority of taxpayers already take the standard deduction. He also noted that the National Association of Home Builders (NAHB) came out in favor of the GOP's tax plan.

a reply to: FyreByrd


I personally bought my home because I really liked it, not because of a mortgage deduction.

Silly, only the wealthy are capable of crunching complicated numbers. Amortization is a black art that no one but CPAs and bankers understand. Cost projections are on a par with astrology. Financial planning? Pfft.

He's right.

Some people can't even use a deduction because all their deductions don't exceed the standard deduction.

And besides, the mortgage deduction is interest which means big debt any way you "take" it.

a reply to: FyreByrd


Its no different here, our elected leaders do not live in the same world as the rest of us.


The average politician here owns 4 homes, less than 50% of Aussies own their own homes, and these pricks just keep making it harder and tightening the noose.

a reply to: FyreByrd

I can not say that he is wrong, because he is not wrong. That is the way people in society think. I am sure you have watched some the media programming, as have I.

I agree with how you look at it. The mortgage deduction should be a major consideration for buying a home. People have lost the urge to educate themselves in such matters. They just want to blame someone else for their troubles now.

So yes. I believe this guy is telling the truth, and that sort of tells me that our failures as a society begin at home.

Education is a key to a door. Some people just want to be locked up.

a reply to: FyreByrd

In fact, while the average savings is $1,918 across all incomes, those who earn less than $75,000 per year typically save $800 or less each year by deducting their mortgage interest.

www.fool.com...

Taxes have become confusing. No doubt about that. I used to do it myself, even itemizations...now I just let a tax accountant do it and pay the extra insurance that they will be responsible for an audit if they F up! Peace of mind and less taxes is always better come tax day! The savings more than covers the service too! Woohoo!

Edit add: yes, I believe he is right! To get back on topic. I buy a home when i feel confident that we will have money to pay the mortgage. Obviously, being employed and feeling one has job security is a big factor in making a big purchase and commitment!

If the mortgage deduction is a big factor in your decision to buy a home, you aren't in a good enough financial position to be buying that home. Start living within your means.

a reply to: face23785

Actually, it can be an important factor in determining whether to rent or buy.

a reply to: Phage

Actually, a low interest rate is what makes buying a home better than renting. Your monthly payment with interest over 30 years is generally going to be lower than whatever profit a landlord will charge to keep up your property for you.

Well then by all means let's give Trump a massive tax break while screwing over the middle class. I love it!

a reply to: Deetermined

The would depend upon the real estate market where you reside. But, as I said, the mortgage interest deduction is an important factor. As is the equity portion of your mortgage payment.

originally posted by: Deetermined
a reply to: Phage

Actually, a low interest rate is what makes buying a home better than renting. Your monthly payment with interest over 30 years is generally going to be lower than whatever profit a landlord will charge to keep up your property for you.

Over 30 years, perhaps. Though, folks like me getting up there in years...looking to sell come retirement and rent. The cost of property taxes are higher than renting nowadays, so obviously...it will make more sense to rent and not worry about the maintenance.

a reply to: FyreByrd

I purchased my home because I needed a place to live and I liked the home.

Deducting interest never once factored into my decision.

a reply to: CynConcepts

The cost of property taxes are higher than renting nowadays, so obviously

I believe that the deduction for property taxes is going byebye with this plan?

a reply to: CynConcepts

The cost of property taxes are higher than renting nowadays

No one is going to pay property taxes and then rent it to you for less than they paid

That would be asinine.

a reply to: Dudemo5

Not likely. If you lower the overall corporate tax rate and eliminate the majority of deductions, they're still going to end up paying more. Trump gets the best tax breaks right now because of everything he's allowed to depreciate. Of course, how depreciation is going to work in the future hasn't exactly been mentioned.

originally posted by: Deetermined
a reply to: Dudemo5

Not likely. If you lower the overall corporate tax rate and eliminate the majority of deductions, they're still going to end up paying more. Trump gets the best tax breaks right now because of everything he's allowed to depreciate. Of course, how depreciation is going to work in the future hasn't exactly been mentioned.

LOL.

a reply to: Deetermined

Actually, it has.
What is now capitalized would be expensed. Big tax advantage there.