We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Eliminating the Home Mortgage Tax Deduction - Essay Example

Comments (0) Cite this document
Name: Institution: Course: Date: Eliminating the Home Mortgage Tax Deduction White (1) note that since federal income tax was enacted by the Congress in 1913, taxpayers were now allowed to deduct mortgage interest payments on their federal tax returns. During the time of its introduction, home mortgage interest formed part of any interest allowed for any interest paid…
Download full paperFile format: .doc, available for editing
Polish This Essay94.3% of users find it useful
Eliminating the Home Mortgage Tax Deduction
Read TextPreview

Extract of sample
"Eliminating the Home Mortgage Tax Deduction"

Download file to see previous pages White argue that taxpayers were now allowed to deduct interest they pay on secured loan by qualified homes, either their main home or a second home. The loans in this case include first and second mortgages, credit’s home equity line and home equity loans. White (1) argues that recreational vehicles and even boats may also qualify as home in case they have cooking sleeping and toilet facilities. White notes that millions of US homeowners depend on the Mortgage Interest Tax Deduction as a way of reducing their true cost of homeownership and have more disposable income. This interest is filed on form 1040 of schedule A accompanied with other itemized deductions such as medical expenses, real estate property tax and donations. In this case, taxpayers are expected to fill in Schedule A, to determine if their itemized deductions exceed the standard. If this is proved so, then taxpayers will save more money based on their taxes by itemizing. Over the past years, many issues and controversies surrounding Home Mortgage Tax Deduction have arisen as to whether or not it should be scraped. Many economists consider it a waste of money due to concern about the federal budget deficit (Perez 1). They argue that Home Mortgage Tax Deduction does very little to assist in lowering income homeowners make the changeover from renters to owners. These economists say that Home Mortgage Tax Deduction only encourage upper income buyers to buy big homes to take bigger mortgages a view which I also concur with. This paper will discuss why Home Mortgage Tax Deduction should be scraped as a way of cutting the budget. History of the residential housing market Muth and Goodman (1) argue that housing is the most precious and unique commodity. In US for instance, about one-seventh of all personal consumption expenditures are on housing exclusive of other household operations and furnishing. They notes that residential real estate accounts for more than half of the US fixed capital stock and about one-quarter of the country’s gross lending investments are made up of construction of residential estates. Mortgage lending has however varied for one-quarter to one-fifth of all funds raised by Americas credit markets. United States is one country that has faced economic housing bubbles over the past few years affecting many parts of the countries housing market. For instance, the prices of housing peaked at the beginning of 2006 with a decline towards 2007 reaching its low recently in this year. For instance, at around December 2008, the home price index of Case-Shiller reported the largest drop in prices in America’s history. It is argued that increased rates of foreclosure between 2006 and 2007 among homeowners in US is what led to the crisis that hit the country in August 2008 for credit, subprime, mortgage, hedge funds. Leader of the realty and mortgage industries Economy Watch (1) notes that real estate industry emerged as one of the major industries in the united states over the past few years. It argues that the housing bubble witnessed in Florida, California, and Michigan, and New York brought with it major changes in real estate in US. The housing bubble was the result of an increase in valuation of real estate in the US domestic territory. Economy Watch reports that mortgage lenders, commercial banks and other financial ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Eliminating the Home Mortgage Tax Deduction Essay”, n.d.)
Retrieved from https://studentshare.org/management/1397114-eliminating-the-home-mortgage-tax-deduction
(Eliminating the Home Mortgage Tax Deduction Essay)
“Eliminating the Home Mortgage Tax Deduction Essay”, n.d. https://studentshare.org/management/1397114-eliminating-the-home-mortgage-tax-deduction.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Mortgage and Depreciation Expense and Tax Analysis
Obviously, this means that when mortgage rates are down, investors tend to lower prices for the house (Lank, 2003). In this regard, real estate investors would have to take a longer time to pay for the mortgage, and this means that they mortgage the house at a hire rate.
3 Pages(750 words)Essay
The rules on the deduction of expenses for employed and self-employed persons are different and create inequity in the tax syste
The employed taxpayers are taxed according to the PAYE system whereas the self-employed taxpayers are taxed under the self-assessment system. Under the PAYE system, it is the responsibility of the employers to deduct the amount of tax payable as they pay salaries to the employees.
4 Pages(1000 words)Essay
The Flat Income Tax
To eliminate this burden from the individual taxpayer as well as businesses, tax reform advocates have suggested that we move to a flat income tax system. Under the proposed system would be taxed at an identical rate, which some legislators have proposed to be 17 percent (Armey 24).
6 Pages(1500 words)Case Study
86(1) Low of property Act 1925 or, where the mortgage is created by A chare by deed by way of legal mortgage under s. 87, he has the same Protection, powers and remedies as if he had a legal term of years in the Property. The property consists of an occupied dwelling -house, and therefore a Court order for possession will be required (protection from eviction Act 1977).
4 Pages(1000 words)Essay
Mortgage Crisis
The current financial downgrade will affect credit card loans, home equity loans and prime mortgages causing a consumer recession. The house prices in 2007 fell by almost 6% and the figure is expected to rise another 15% in 2008. This combined with the unemployment rate which in December was at the highest level at 5% is projected to increase to 5.8% by the end of the year.
2 Pages(500 words)Essay
The role group membership theories play in subprime home mortgage lending
It has been widely theorized that the subprime lending market is targeting the lower class for its mortgage lending. This has been labeled Predatory Lending. This is not to say
35 Pages(8750 words)Essay
Federal National Mortgage Association(FANNIE MAE) and Federal Home Loan Mortgage Corporation (FREDDIE MAC) and the Housing Crisis
The main aim of establishing Fannie Mae was to give local banks money to finance home ownership. This was done in order to encourage and therefore increase owning of homes and to avail affordable housing. During its initial stages Fannie Mae’s
9 Pages(2250 words)Essay
There are numerous sorts of contracts utilized around the world. However a few variables extensively characterize the attributes of the contract. These may be liable to nearby regulation and lawful
2 Pages(500 words)Statistics Project
This means that this individual has made a gain of 20000 USD. The seller of this painting should pay tax for the 20000 USD gains which he or she has acquired as profit. It is worth
4 Pages(1000 words)Essay
Poverty Deduction
Nevertheless, there might be situations when a part of the population is not able to prosper in the society and, quite the opposite, struggles to satisfy the most basic needs. Poverty is the phenomenon that comes to mind right away in this case.
5 Pages(1250 words)Essay
Let us find you another Essay on topic Eliminating the Home Mortgage Tax Deduction for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us