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US Tax Question - paying off mortgage a good/bad idea?

Made a statement recently to the effect that it doesn't make sense to pay
down your mortgage as you'll need to file a Schedule A to claim gambling losses.
If the mortgage is paid off, then you'll need to give up standard deduction to
claim losses as most people won't have enough deductions to normally file
Schedule A without mortgage interest deducts.

That was my gut feel. Now I'm wondering if a case can be made for paying off
the mortgage especially in these low-interest times?

Any tax experts want to noodle this one out?

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Something doesn't seem right in your statement...

Lets say that you do pay off your mortgage. While you now have zero
interest to claim for a deduction... you still have state/local
income taxes, real estate & personal property taxes, and charitable
contributions to claim.

Lets say that you don't have any of these items (or they are small in
amount). If your gambling losses don't rise to the threshold of the
standard deduction... then you can still claim the standard deduction
and "make out" better.

The only way that I can think that you must itemize is if you are
filing MFS (Married Filing Separately) and your spouse itemizes. In
that case, it may be more beneficial to see how you and your spouse
would fair if you changed your filing status to MFJ

Jeff

Made a statement recently to the effect that it doesn't make sense

to pay

down your mortgage as you'll need to file a Schedule A to claim

gambling losses.

If the mortgage is paid off, then you'll need to give up standard

deduction to

claim losses as most people won't have enough deductions to

normally file

Schedule A without mortgage interest deducts.

That was my gut feel. Now I'm wondering if a case can be made for

paying off

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--- In vpFREE@yahoogroups.com, TedChee@a... wrote:

the mortgage especially in these low-interest times?

Any tax experts want to noodle this one out?

> Any tax experts want to noodle this one out?

Ok , if you claim less than your standard deduction, IRS will

correct your error,
You can claim losses up to the amount of wins, keep your own diary
or records to verify, printouts from the casino slot club are good
for BACKUP only,
If your wins are higher than the standard deduction, file the sch.A
Always pay off the house if you can, peace of mind offset any
deduction, in the future more & more people are goin to get caught by
the AMT, Alternative Minimum Tax, W's give away to the top brackets
assures no reform, where all deductions & credits are eliminated or
cut way back , a lot of tax payers with mortgage interest & kids are
goin to be shocked at their tax bill in the near future.
M J Perry

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--- In vpFREE@yahoogroups.com, TedChee@a... wrote:

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