Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10 5/3/83 based; site houxm.UUCP
Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!houxm!gregbo
From: gregbo@houxm.UUCP (Greg Skinner)
Newsgroups: net.taxes,net.singles
Subject: Re: marriage penalty (long quote at end)
Message-ID: <1157@houxm.UUCP>
Date: Thu, 28-Feb-85 17:18:36 EST
Article-I.D.: houxm.1157
Posted: Thu Feb 28 17:18:36 1985
Date-Received: Fri, 1-Mar-85 09:41:26 EST
References: <1137@pyuxa.UUCP> <2299@mit-hermes.ARPA>
Organization: AT&T Bell Labs, Holmdel NJ
Lines: 41
Xref: watmath net.taxes:751 net.singles:6048

>> WHAT? Surely you jest about this "law"!  E.g., I currently rent a very nice
>> apartment, in a vary nice complex, for a reasonable amount of $. I like my
>> apartment, and I don't, in general, like to move. However, my current situation
>> (a single, "upwardly-mobile",  young professional) results in my paying
>> mucho-kilobucks in income tax each year.  Thus, my calcualtions have shown
>> me that I can no longer afford to ignore the tax breaks that home ownership
>> provides. So I've decided to buy a townhouse.
 
>> Now, in my case, I don't need a bigger or better home; I don't necessarily
>> want to move; I don't necessarily want the hassles, maintenance, etc.
>> involved with a house. I only want to save on my taxes. Thus, in my case,
>> it is obvious what my "clear and primary intention" is for buying a townhouse.

I take it that, unless you are a highly-paid consultant (as opposed to the general
flavor of AT&T or Bellcore employee) that you are in the same tax bracket as I am.
True, I'm paying more taxes than I think I should be paying, however I don't see
that as reason enough to buy a house.  The hassles involved in raising the cash
and/or getting the loans approved, finding people to live with you, dealing with
the various utility people, etc. are just too much for me right now.  Also, unless
you are permanently settled (which most yuppies aren't), it just doesn't pay to
buy a house unless you can get rid of it quickly.  I do mind somewhat paying the
rent that I pay ($490/month) but my landlord deals with all the little things other
homeowners deal with (water, heat, plumbing, etc.).  At this point in my life I
have enough to do without taking care of a house also -- I'd like to keep it that
way until I am more secure and settled.

You say that you have IRA/Keogh accounts and various other ways to reduce your
taxes.  That seems like enough to me.  I dunno ... I haven't filled out my tax
forms yet so I may be in for a shock (!!) but otherwise, I don't see how right now
you are buying a house mostly due to taxes.

Of course, if you really want a house, by all means get one.  If you can find
some other yuppies to throw in with you, that's even better.  I was told by a friend
of mine that the best way for yuppies to go into housing ventures is together.
-- 
			... hey, we've gotta get out of this place,
    			    there's got to be something better than this ...

Greg Skinner (gregbo)
{allegra,cbosgd,ihnp4}!houxm!gregbo
gregbo%houxm.uucp@harvard.arpa