Home Loan Deductibility

I am a lot confused about the discussion concerning the deductibility of the interest on your home loan. For most people, it is not a choice of which to do, it is just the tax code and a help to own a home. As a Land-Lord, I can promise you that owning a home and renting it to someone else is not the way to get rich. As a homeowner and purchaser, having the deduction was nice but not near as nice as owning your home. Once you have the Mortgage company out of the deal, you will still have to save some money for taxes and insurance.

The only solution I know of, is to buy a house on a 15 year fixed note and work as hard as you can to pay it off as early as you can. Use the tax code to deduct the interest and be glad if you can use the standard deduction or the interest which is the biggest.



  1. I actually tried a plan to file Married Filing Separately one year and let my wife file Homestead Exemption at a rental property. That didn't work either. They are gonna screw you no matter what you do. And NO! We did not have any kids in public school. Dang it.

  2. MUD, I know what you mean.

    The first two or three houses that Pam and I bought were on 30 year mortgages. We got through a couple of years on each one, and took the interest deduction during each of those years. It was helpful.

    But, when we went roaming around the world for a while, and settled back here in Bossier, we found a motivated seller. We bought this place on an "owner financed" note. The owner needed to show no "interest income." So, she sold it to us on a no interest loan (with all the principle, and interest already figured into the monthly payments).

    Of course, we could not deduct any home mortgage interest. But, on a 10 year (120 month) payment schedule, we were able to pay off this fabulous place (nyuk), and own it free and clear. Actually, we paid it off about 9 months early.

    I'll tell ya'...but you already know...one of the great joys of life is actually having the deed to your place (be it big, or small) in your filebox...not at a bank somewhere.

    It is "nice" to own your own home.