mortgage interest deduction?

marks737 said:
If your itemized deductions are less than $24,000 (New Standard Deduction for married filing jointly), it won't matter.
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This is gonna suck for me This year. I had a around 36k in deductions last year and now will only have around 26k. I'll be owing more. I hope people in NY put some of that extra money away you saw in your paycheck last year, because your probably gonna have to give it back. I'll know exactly at 5pm today if this whole new great tax law worked for me.
 
mnm99 said:
This is gonna suck for me This year. I had a around 36k in deductions last year and now will only have around 26k. I'll be owing more. I hope people in NY put some of that extra money away you saw in your paycheck last year, because your probably gonna have to give it back. I'll know exactly at 5pm today if this whole new great tax law worked for me.
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Even though your deductions are going down, you may owe less tax due to changes in the tax brackets.

TAXBRACKETS-2-Single-122617.png
 
Jaybeaux said:
Even though your deductions are going down, you may owe less tax due to changes in the tax brackets.

TAXBRACKETS-2-Single-122617.png
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Nope. Much less to deduct this year. Did you notice a decrease in your federal witholdings this year? Save that if you live in NY...I did and now I have to pay them back. I just figured it out. Last year I got back $930, this year I owe $2450. I did get an extra $930 in my check though. So I quess that means I really owe around $1530. Bottom line is I'm giving back that extra money I was given during the year AND SOME. We file separate, It saves us like $700. My wife owes $4500. This sucks
 
Have you been paying AMT tax in the past? If so, that goes away which will save a significant amount.
 
Why does this conversation keep going back to what one will "owe" or "got back"? What did one earn? What did they pay on the earning? What percentage is that to compare with last year or other returns?

MM
 
If my boat was within a foot of a required length, which I agree isn't the case, then I would lay a piece of plywood on the back as a temporary extended swimdeck, and take a picture.
 
MonacoMike said:
Why does this conversation keep going back to what one will "owe" or "got back"? What did one earn? What did they pay on the earning? What percentage is that to compare with last year or other returns?

MM
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Because most people just don't get it. I had one employee who was convinced the government was giving her money when it was actually her refund. Our tax system would be entirely different if they didn't do withholding and people actually had to write checks for taxes due.
 
mnm99 said:
Nope. Much less to deduct this year. Did you notice a decrease in your federal witholdings this year? Save that if you live in NY...I did and now I have to pay them back. I just figured it out. Last year I got back $930, this year I owe $2450. I did get an extra $930 in my check though. So I quess that means I really owe around $1530. Bottom line is I'm giving back that extra money I was given during the year AND SOME. We file separate, It saves us like $700. My wife owes $4500. This sucks
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NY is a high tax state. More likely than not, NY residents will do worse. So will CA and in some instances IL. Me (from IL) will basically break even. So life goes on.
 
The $10,000 cap on SALT deductions is going to crush residents in NY, NJ, MA, CT, CA etc. Most pay more than that in property taxes on their homes so other local property taxes are capped including state and local income taxes.
 
JVM225 said:
Easiest and most fair way to figure it out. Set a fixed federal tax rate based on what it costs to run the federal government then stick with it. Ecenimy does good, the thief’s in DC get more money to play with. Economy has a bad year, no borrowing allowed, they have to make it work on less money.
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I used to dream of this system. Now it is so out of reach my dreams don't even stretch that far.
 
JVM225 said:
Easiest and most fair way to figure it out. Set a fixed federal tax rate based on what it costs to run the federal government then stick with it. Ecenimy does good, the thief’s in DC get more money to play with. Economy has a bad year, no borrowing allowed, they have to make it work on less money.
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What it costs to run the government....? That number isn’t fixed at all. Every politician (both sides) is elected to “do something”. So they do. They pass laws. Laws that need regulations, laws that need bureaucracies to carry out and enforce, laws that need to process and manage distribution and expenditures. What they don’t DO is STOP doing things that aren’t producing results. The costs only grow. They never go down, so a fixed rate would never work.
 
Just an FYI...I was not able to deduct my interest from the boat. Not sure why but the CPA said nope.
 
boatman37 said:
Just an FYI...I was not able to deduct my interest from the boat. Not sure why but the CPA said nope.
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I would be finding out why. This link seems to say it can be deducted.

WASHINGTON, March 6, 2018 – Just two short years ago, Congress extended some boat sales tax and mortgage interest deductions for recreational boat buyers. Excluding home equity loans, those deductions remain for next year’s 2018 tax season with the recently passed GOP tax overhaul plan signed into law on December 22, 2017, albeit with some new lower limits on lending amounts, according to Boat Owners Association of The United States

2017 Boat Loan Deduction
A boat is considered a second home for federal tax purposes if it has a galley, an installed head and sleeping berth. For those owners with a secured boat loan, mortgage interest paid on the loan may be deducted from federal income taxes. Taxpayers may use the home mortgage interest deduction for one second home in addition to their primary home, and must itemize deductions on their returns.

Some boaters may be unaware of this potential tax benefit because not all lending institutions send borrowers an IRS Form 1098, which reports interest paid. Not receiving the form does not preclude taking the deduction. If a 1098 is not available, boaters should contact their lender for the amount of interest paid and should enter it on line 11 on Schedule A along with the lender’s tax ID number. If a form 1098 is sent, boaters should simply enter the amount on line 10 of Schedule A.

For more details on the mortgage deduction on boats that qualify, go to IRS.gov and download IRS Publication 936.

Looking to 2018
The new limits on deductibility of mortgage interest and state sales taxes will kick in when boat owners calculate their 2018 tax liabilities along with changes to home equity loan deductions. Boaters are urged to contact a tax preparer or financial adviser for more information.


https://www.boatus.com/pressroom/release.asp?id=1361

MM
 
boatman37 said:
Just an FYI...I was not able to deduct my interest from the boat. Not sure why but the CPA said nope.
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Maybe your CPA meant it wouldn't help you? (In another thread you said you took the new higher standard deduction) To me that would seem like the interest paid on your boat loan wouldn't have been substantial enough to have made itemizing your deductions worthwhile. I would certainly still give him or her a call.
 
boatman37 said:
Just an FYI...I was not able to deduct my interest from the boat. Not sure why but the CPA said nope.
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If your boat has sleeping, cooking, and potty accommodations built in to it, it would qualify as a second home if your loan is secured by the boat.

There probably was no question, 'does the boat quality and is this an allowable deduction'. I think more likely the question was 'does this allowable deduction do the guy any good'. If the total of your itemized deductions doesn't exceed the standard deduction, the answer would be 'no'. Improperly phrased he might of said, 'nope, you can't use it'.

Did you itemize or take the standard deduction?

Oops, Birdog beat me to it.:)
 
scooper321 said:
What it costs to run the government....? That number isn’t fixed at all. Every politician (both sides) is elected to “do something”. So they do. They pass laws. Laws that need regulations, laws that need bureaucracies to carry out and enforce, laws that need to process and manage distribution and expenditures. What they don’t DO is STOP doing things that aren’t producing results. The costs only grow. They never go down, so a fixed rate would never work.
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Exactly! Along with an inability to effectively govern or legislate, Congress has proven that they are incapable of responsibly managing our money so you have to restrict them constitutionally to collecting and spending no more than the amount they collected or spent the previous year plus a percentage increase not to exceed the actual GDP from that previous year.
Example: They spent 4 trillion last year, and there was an increase in the GDP of 2%, prohibit them from collecting and spending more than 4 trillion 80 billion.
 
standard deduction. that might be why. and we just bought the boat in August so only made 3 payments on it in 2018 so wouldn't have amounted to much
 
I see someone created multiple accounts to spam
 
Back in 80s 90s I used to write off boat interest as a 2nd home. I think that went away.
Consult your tax professional.
Don’t blame me when IRS locks your ass up. Mine paid for. I be floating.
 
Golfman25 said:
NY is a high tax state. More likely than not, NY residents will do worse. So will CA and in some instances IL. Me (from IL) will basically break even. So life goes on.
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Yeah right. Heard it all before.

Sure the tax rate is higher....on everything....but real estate values are lower.

I had friends move outa state to where the real estate taxes were real cheep. But their mortgage was 3x higher, which made the monthly expenses more.

And let's not talk about states that have personal property taxes. Then, you need to buy a second hand rusty old car, and god forbid you own a boat.

Greener grass for sure.
 
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