Avoid This Common Mortgage Interest Deduction Mistake

The SCAM of Mortgage Interest Tax Deductions could be stepping over dollars to worry about pennies. Today we talk about itemizing versus standard deductions.
Do you itemize your tax deductions? Or do you take the Standard Deduction on your federal income tax each year?

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Are you tired of being confused about taxes? Well, get ready to uncover the truth about the mortgage interest deduction. In this video, we expose the scam behind it and why the standard deduction is actually the better option. Don't let the system fool you - subscribe now to stay informed and never miss another tax scam!

Welcome to another insightful video where we tackle one of the most misunderstood aspects of personal finance: The Mortgage Interest Tax Deduction. 🏡📊 Whether you're contemplating paying off your mortgage early or just curious about tax deductions, this video is packed with must-know information!

#MortgageTips #TaxDeductions #PersonalFinance #FinancialPlanning #MortgageMyths #SmartInvesting

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In this video, we're going to talk about the SCAM of Mortgage Interest Tax Deductions.

Mortgage interest is an important part of your tax return, and should be itemized and claimed as a deduction on your tax return. But there's a SCAM happening where people are claiming mortgage interest deductions that they don't actually qualify for. This video is designed to help you avoid this scam and stay on the right track in claiming your deductions!

Chapters of Today's Video:
00:00 Mortgage Interest Tax Deductions
00:16 Do You Remember Seeing This (Turbo Tax)?
00:50 No Ragrets on Mortgage Payoff
01:22 Less than 5% Benefit from Tax Deductions
02:05 Itemizing or taking Standard Deduction
02:46 What You Can Itemize for Taxes
03:36 2024 Standard Deduction for Federal Tax
04:07 How a Mortgage Doesn't Benefit YOU
05:09 Epic Comment on Mortgage Interest

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[BobSharpe]

Take THAT, Uncle Joe!! Do you Itemize or take the Standard Deduction every year?

[complexnumbers]

Great vid and explanation! I itemize because I'm single and have 2 mortgages. I also prefer investing extra cash as opposed to paying the mort, but this is enlightening for the folks who may not have realized they take the SD either way and do wish to pay off their home.

Ps. Would love to see you do a cash secured puts on webull vid after that amazing covered call tutorial from last year :)

[zm]

Re:The "comment" at the end of the video - it's about opportunity costs of paying off the mortgage vs investing. Just simple tradeoff math based on roi, tax bracket, loan size, and interest rate

[DoubleJabSlipRightHand]

Great videos. I am confused a little. If I'm married and we pay 12k in mortage interest, and 5k in property taxes, we don't receive any deductions?

[danielsimonson]

My Mortgage is 3.5%.... Why on earth would i pay that off when i could invest it in SP500 index and average 12% returns over the next 25yrs? In fact, i could invest that money until it is large enough to pay off my mortgage, then use the money at the bare minimum.

[CalmerThanYouAre]

You know what’s common among the 5% all benefiting from the mortgage interest deduction? They’re all wealthy! Get like the 5%, not the 95%. 👍🏻

The perspective in this video entirely ignored the opportunity cost of what your capital could earn outside your house, especially after accounting for the tax reduction.

Assuming $100K of mortgage interest deductibility, you’d lower a 7% mortgage rate to what would effectively be a 4.76% mortgage rate through tax deductions. More if it pushes other itemized deductions above the MFJ standard deduction threshold (SALT, charitable contributions, etc) that otherwise wouldn’t be.

On top of that, cash is paying 5.25% and most in the 5% mortgage interest deductibility cohort are earning 10% to 30% on their capital through either stock, real estate or investment in their own corporations.

Having excess liquidity on hand is another major factor that isn’t easily put into an ROI calculator. But those scooping up real estate at 50% discounts in 2009 certainly understand.