mortgages

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Thu May 27 22:57:47 PDT 1999


From enrique at ee.cornell.edu Thu May 27 21:46:54 1999

> the $30k->$40k AGI range averages about $13k of exemptions

> and deductions ...

I am not sure I understand what personal exemptions have to do

with my argument ...

I thought I explained that the IRS, in reporting tax statistics, does not break out exemptions and deductions separately; they combine them. However, you can imagine that if the $30k->$40k group (far less than those at the 80% level) are already reporting $13k of exemptions and deductions that they are likely indeed Schedule A filers taking advantage of more than the standard deduction. Which means, it's likely they are taking advantage of the mortgage deduction.

That is: in order to have $13k of "exemptions plus deductions" you must have at least 5 exemptions if you are to not have enough to break though the standrad deduction. Given these are average figures, and the average household has less than 5 exemptions, I think it's safe bet that in order to get $13k of "deductions plus exemptions" you probably have to have more than the standard deduction in deductions.

Like I said: we don't know, and can't know, since the IRS doesn't publish their statistics like that. But we do know that at the "top quintile" we're talking about a *lot* more than just exemptions and the standard deduction; therefore, I claim, your estimate that only the top quintile can take advantage of mortgage deductions is wrong.

Filers only benefit from the mortgage exemption if the interest

they are paying plus any other deductions other than the

personal ones is greater than $7,500, right? I have a very hard

time seeing how that would be the case for families with AGIs

under 50K.

I don't have a hard time of it at all. Why not take a look at the tax stats and then tell me if you have a hard time seeing it?

/jordan



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