Standard deduction V. mortgage interest deduction - is it basically only for the rich?
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In the USA experience: I find the whole "mortgage interest deduction V. standard deduction" issue confusing. Here's how I understand it: Everyone gets a $24,000 deduction. Great so far. If you like, you can instead take your mortgage interest as a deduction. (Obviously you would not do this unless that interest is $24,001 or more.) The vast majority of folks in the US with a mortgage pay about $10,000 a year in interest - nowhere near the $24k point. For rich people, your mortage interest is going to be more than $24,000. Let's say $50,000! Et voila, rich people get an extra ($26,000 in the example) tax break. My question is simply, do I understand the situation correctly? Maybe there's another factor I don't know about? Is the "Standard deduction V. mortgage inte