Saving the US Economy - the Canadian Way

[The Minsky Moment]

Alfred-

What you are missing is that the US does not tax the imputed rental value of owner-occupied housing.  If the US code did so, then I would agree that the mortgage interest deduction would be justified to create parity of treatment with commercial RE.  But it doesn't, and therefore the deduction is simply a pure subsidy that inflates residential housing prices.

[alfred russel]

Alfred-

What you are missing is that the US does not tax the imputed rental value of owner-occupied housing.  If the US code did so, then I would agree that the mortgage interest deduction would be justified to create parity of treatment with commercial RE.  But it doesn't, and therefore the deduction is simply a pure subsidy that inflates residential housing prices.

You are right and I am wrong.

The one case where I have a point is if the investment property is losing money (rental income doesn't offset the costs of ownership), but there are rules against passive activity losses on real estate (though there are ways around that problem).

[PDH]

You are right and I am wrong.

This is the worst thing I have ever read on Languish. For SHAME!