Quote:
Originally Posted by Shazam
No, that is not how it works. You can either claim the mortgage interest or the standard deduction. You can't claim both.
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That kind of backs up his point that it largely benefits the well to do. Assuming a 5% mortgage with 30 year amortization, a married couple would have to carry a mortgage of approximately $240,000 before their mortgage interest deduction goes above their standard deduction. Anything below that and they reap no benefits from mortgage interest deduction.
Conversely, a married couple who can afford a $1,000,000 mortgage would be able to deduct an additional $37,000 above their standard deduction.