It’s not a ‘Loophole’, it’s a tax. The gist, from Breitbart:
Its called “The Imputed Net Rental Income on Owner-Occupied Housing” and the feds include it in their annual list of “tax expenditures.” That term is how Washington officially refers to credits, deductions and exemptions.
[typography font="Ubuntu Condensed" size="20" size_format="px" color="darkred"]Let’s say you own a home and your mortgage is $1,000 a month. If, however, you instead rented the home from a landlord your rent, let’s say, would be $2,000 a month. To the mandarins at the IRS, you are “earning” an implied $1,000 a month because you own and not rent, and that “value” should be added to your taxable income. If you own your home out-right and don’t have a mortgage at all, you would be “earning” $2,000 a month which the IRS thinks should be added to your taxable income.[/typography]
This, to me, is a sign of how big a challenge we face in reigning in Washington. When the feds consider money I don’t have to pay because of a choice I made as a taxable event, then the leviathan is truly all-consuming.
Oh, and the feds list this exemption as one of the top “loopholes” in the tax code. They estimate that it “costs” the feds over $50 billion a year to not levy this tax. Yes, in Washington, items exempt from taxation are considered “costs” the government bears. This may be true in a strict economics sense, but it is also very revealing of how the government looks at its citizens.
Any scrap they let us keep is a “cost” they are kind enough to bear.
Good grief. Apply this convoluted thinking to every aspect of our lives and we begin to understand exactly what they think of us… and it’s not complimentary.