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   > MP>We can write off interest *but* it is only really a benefit early on in   
   you   
   >   >mortgage, when the interest payments are higher.  In KY you can do that on   
   >   >your state taxes, too.  It has not been of any benefit to me for several   
   >   >years now as my mortgage is 10+ yrs old.   
      
   > But if your mortgage is over 25 or 30 years there still must be a   
   > fair amount going to interest. In any case, just to toss out some   
   > random figures, if you have a $250,000 mortgage at 6% over 25 years   
   > you would over that time pay $229,855 in interest that you wrote off   
   > at some point.   
      
   Yes, there is, but it is not enough to write off.  You *can* write it off,   
   but it is not to your benefit.  We have something called a "standard   
   deduction" that AFAIK everyone can take on their individual income tax.   
   The home mortage interest is only of value so long as (added up with a   
   few other things, like charitable contributions, personal property tax,   
   etc.) it is *greater than* the standard deduction.   
      
   So once that interest goes down enough, it is no longer of benefit.  The   
   state standard deduction is lower than the federal, so it was of benefit   
   for a little longer there, but the state also doesn't allow you to add as   
   many things in that deduction equation (they no longer include personal   
   property tax, as an example) so it eventually is also no longer of benefit.   
      
   > RM>> Here our advantage is your *Principal* residence can be sold at a   
   >   >> huge profit without any Capital Gains tax involved.   
      
   > MP>That *is* nice. ;)   
      
   > Do you pay tax on the amount your house goes up in value if you   
   > sell it?   
      
   You do if you pocket it, I think.  If you are buying another home I cannot   
   remember.  It has been long enough that I don't recall paying capital   
   gains, and the house I bought cost more than what I sold the previous one   
   for, but I might have.   
      
   > A question off topic, which is funny considering the question..   
   > Lots of conversations going on in the conference which is called   
   > FI-Consprc. I assume FI is Fido? What is this area supposed to be   
   > used to discuss?   
      
   > If Consprc is short for Conspiracy then maybe some of this might   
   > still be on topic..   B)   
      
   LOL you are right on both counts.  It should be for Conspiracy topics,   
   which could include politics, but I do think we've got off topic on this   
   thread.  Since we are discussing tax differences between the US and   
   Canada, I will move this response over to the Canada Chat echo as I know we   
   both read and post there.  ;)   
      
   Mike   
      
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