Senate Passes Sweeping Republican Tax Overhaul Bill

[DenverGP]

That's not the way it was explained when we bought. They intimated that it's a separate thing from itemizing. Had I known it's not, I would not have purchased. I have no reason to itemize that I'm aware of...

With a standard deduction, it's not like there's a refund of the difference between owed and the full amount, right? So I don't see how this is in any way beneficial to me.

Until this new tax change, the mortgage interest on most homes (certainly any in the denver area) was a large enough amount to instantly give you a benefit from using the itemized deductions.

In my case, I had just 3 itemized deductions : mortgage interest, state/property taxes, and charitable contribs. Mortgage interest accounted for most of it. I think my itemized deductions on my 2016 taxes were around 18k, compared to the old standard deduction of $12,600 for married couples.

In 2018, the married standard deduction will be $24,000 for married couples, so I'm getting an extra 6k worth of deduction from the new standard deduction.

And it's one less form to fill out when doing my taxes, and less records to worry about.

It feels like I'm getting screwed because I'm not benefiting from my mortgage interest, but I'm still coming out ahead.

[Irving]

That's not the way it was explained when we bought. They intimated that it's a separate thing from itemizing. Had I known it's not, I would not have purchased. I have no reason to itemize that I'm aware of...

With a standard deduction, it's not like there's a refund of the difference between owed and the full amount, right? So I don't see how this is in any way beneficial to me.

If you weren't itemizing before, then you weren't writing off your mortgage interest anyway. You just went from a $12,000 standard deduction for a married couple, to a $24,000 standard deduction for a married couple. You just benefited $12,000. If you were itemizing to write off your mortgage interest, then it was probably over $12,000, but way less than $24,000. So, just like below, feels bad, but still better. I called my accountant to specifically ask your question.

It feels like I'm getting screwed because I'm not benefiting from my mortgage interest, but I'm still coming out ahead.

[CS1983]

If you weren't itemizing before, then you weren't writing off your mortgage interest anyway. You just went from a $12,000 standard deduction for a married couple, to a $24,000 standard deduction for a married couple. You just benefited $12,000. If you were itemizing to write off your mortgage interest, then it was probably over $12,000, but way less than $24,000. So, just like below, feels bad, but still better. I called my accountant to specifically ask your question.

Never had a mortgage until May 2017, so correct... but, there was nothing to write off. However, I would not have purchased if there is in fact no monetary benefit to do so. The way the loan officer explained it made it sound like it was a separate deduction. She explained it because I balked at a higher monthly living cost and she explained we could deduct and thus the mortgage actually = lower than rent. In fact, it seems, all I have done is raise my costs without lowering my owed amount. I might still not be understanding it correctly.

[Irving]

Never had a mortgage until May 2017, so correct... but, there was nothing to write off. However, I would not have purchased if there is in fact no monetary benefit to do so. The way the loan officer explained it made it sound like it was a separate deduction. She explained it because I balked at a higher monthly living cost and she explained we could deduct and thus the mortgage actually = lower than rent. In fact, it seems, all I have done is raise my costs without lowering my owed amount. I might still not be understanding it correctly.

Of all the benefits of having a mortgage, the tax write off of the interest carries the least weight. If your interest rate is anywhere near the inflation rate, then you're basically getting free money, so don't get wrapped up in playing mortgage vs no mortgage in your head.