Estate Planning & Fixed Annuity Forum.
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Reply with quote  #1 
The mortgage interest tax deduction is a financial fallacy.

If you're in a 28% tax bracket that means for every $1.00 you spent in interest the government reduces your income taxes by 28 cents. 

However, if you claimed that $1.00 as income you would have paid 28 cents in tax but had 72 cents MONEY in your pocket.

So would you rather have 28 cents back in taxes or 72 cents as income (MONEY) in your pocket?

Only someone selling mortgages would claim how great it is to have a mortgage interest tax deduction rather than money in your pocket. 

Moral of the story...always do the simple math!

Pay your damn house OFF and don't use it as an ATM!
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Gary D. Spicuzza,

The Trust Group
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