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Financial Planning / Tax Strategies


Subject:  Re: Salaried & no-deductions = SOL? Date:  8/30/2001  2:40 PM
Author:  irina39 Number:  53710 of 123001


My answer would be real estate. Depending.

First of all, wow, you are in an enviable financial situation. Most aren't so lucky. If only I had such issues. Now to your question:

The only remaining tax deduction of consequence [other than children and lets not go there] is the home mortgage deduction. There are a lot of plusses and minuses to owning a home and/or a second home.

Having the ability to itemize using the power of the home mortgage deduction gives me [SE and salaried both] to throw in a lot of expenses/deductions on my sched A that normally I would not get because I could not hit the threshold above the standard deduction...

That said, owning a house can be a pain in the *&^%$#$%^. Renting a home to others can be a DOUBLE *&^%$%^&*#$. Owning a 2d [vacation] home where you spend 2 weeks can be relaxing, helpful and annoying.

I own a home for other reasons than just the tax deduction, that is, for a place where I don't hear people above me or on one side or the other among them... Before you consider home purchase, consider the maintenance taxes, etc, BUT also the intangibles... a place of your own...

Rental Income can be quite a moneymaker, you get to deduct interest and depreciation. Again, look into it before jumping into the deep water...

Is there a place where you would like to retire/visit-purchase a vacation home. You may be able to rent that [no you are NOT going to be able