All Forum Posts by: Chris Clark

I can see the impact to home ownership for personal residences. Nothing in the article refers to investors losing anything. The exclusion for sale of your home may have more restrictions but it doesn't say it's going away. Business expenses will still be deductible and everything I've seen hasn't touched mortgage interest on rentals just on the personal residence.

One thing that most aren't talking about is that for most of the U.S. this doesn't really change too much. Yes there will be some states hit with it harder than others but even the mortgage interest item is just for new residences.

 Yes. If you own a rental you still get a deduction. Only affects your personal residence if you own one.

My understanding of it as it is right now is that it is only being taken from homeowners. If you own a property and rent it out it's still deductible (both real estate taxes and interest).

I agree I think it impacts the market but I think the current state of the proposed regulations only improves the landscape for real estate investors. It takes benefits away from owning your own home with the cap also affecting real estate taxes. And capping the interest deduction on mortgage interest will also affect home ownership rates where prices are high.

Depends on the cost of the appliance. If its under $2,500, it would be something you could expense without having to 179 the purchase if you make the proper election.

On a flip it becomes additional basis in the property. 

For the plan just announced there is not an additional limit on 401(k) contributions.

John is mostly correct on the Roth IRA. If it's a regular IRA that you get a tax deduction for contributing to, moving it to a Roth would be taxable. The benefit is it would grow tax free. Converting to a Roth shouldn't create a penalty as it's still a conversion but the money has to stay in the Roth IRA and it is taxed as ordinary income. One other difference is that once that money has been contributed it can be taken back out later once you've had the account open for five years.

There are ways to take money out of a Roth IRA that are tax free. First time home buyers and higher education expenses are examples of ways to take earnings out that are tax free as well.

It's always a possibility that they could but most in practice won't. Unfortunately it really depends on the bank.