Quote:
Originally Posted by CoachKandSportsguy
Yes, but but only getting a 20%-30% reduction in taxes for every interest dollar spent still reduces after tax income by the 80%-70% of interest paid, so the logic is a behavioral emotional response to paying taxes, not a rational plan after tax income maximization approach. A rational after tax maximization income approach is to eliminate all cash expenses, because there is only a tax rate % benefit of additional expenses. - Expense out + tax % savings = cash out of your pocketbook of more than 0 expenses. The only expenses to deduct for income maximization are those required to produce the income. optional mortgage interest is not required in your stated case.
There is never a free lunch for taxes. . and personally, I love paying more taxes because it means that I am wealthier, after all proper after tax income maximization approaches have been applied. . .
sportsguy |
With respect, you've forgotten or ignored the rest of my post. The deduction against potential income is simply an additional part of the equation, with the difference in actualized returns on investments outweighing the mortgage interest, being the primary reason. Pure math and logic, no "behavioral emotional response" involved