Quote:
Originally Posted by zakthor
It doesn’t seem fair to me that rented houses give their owners tax write offs. What societal benefit is there to subsidize my holding the asset? Removing that benefit would lower housing cost.
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Are you going to differentiate between apartment buildings and single-family homes? They are both technically businesses. Why should one be allowed deductions but not the other? Or do you want to increase rents for apartment owners also?
The societal benefit is a) the owner pays income tax on any money takes home (just like any other business), and b) the rent required to make a reasonable return is reduced.
People that rent either a) choose to rent for personal reasons, or b) don't have the financial ability to buy, because typically a renter covers the mortgage. Is this an 'owner' problem, or a 'renter' problem?
A house is an asset, like a car, a stock portfolio, etc. People think about it in emotional terms and want to alter the tax system accordingly.