Anonymous wrote:I would love to see the childcare FSA amount increased. It’s been 5k since forever, which I’ve already spent and then some by February. The amount was 5k back in 1986 when I was in diapers myself, so talk about not even remotely keeping up with inflation. 5k in 1986 is over 14k today. Seems like it would be reasonable to allow a ~15k tax free allotment.

I don't have kids in daycare anymore and one of my kids is aging out of the Dependent Care coverage this year, but I still 100% agree with you. $5000 is barely 2 months of daycare.

Anonymous wrote:What’s super unfair is calculating capital gains on a house you’ve had for decades. $150k 35 years ago is worth $360k so that should be the cost basis, not starting at the 1990 price.

Huh? So, if you bought Amazon stock in 1998 and you sell it today you should get an inflation-indexed cost basis.

Some folks have some crazy ideas here.

Anonymous wrote:

Anonymous wrote:Because you are benefiting by the appreciation (ie inflation) in the value of your house and your mortgage payment stays the same.

Renters are seeing increases every year.

Your suggestion is ridiculous unless you want your mortgage payment to increase with inflation.

Are you dumb? People take on new mortgages every day.

Your comment doesn’t make any sense. A renter can stay in the same apartment and will see rent increases every time the lease renews (in todays’s market).

A home owner with a 30 year fixed will have the same mortgage payment for 30 years.

Anonymous wrote:I would love to see the childcare FSA amount increased. It’s been 5k since forever, which I’ve already spent and then some by February. The amount was 5k back in 1986 when I was in diapers myself, so talk about not even remotely keeping up with inflation. 5k in 1986 is over 14k today. Seems like it would be reasonable to allow a ~15k tax free allotment.

+1

What’s super unfair is calculating capital gains on a house you’ve had for decades. $150k 35 years ago is worth $360k so that should be the cost basis, not starting at the 1990 price.

I would love to see the childcare FSA amount increased. It’s been 5k since forever, which I’ve already spent and then some by February. The amount was 5k back in 1986 when I was in diapers myself, so talk about not even remotely keeping up with inflation. 5k in 1986 is over 14k today. Seems like it would be reasonable to allow a ~15k tax free allotment.

What an odd post. The various deductions ARE indexed to inflation. The IRS just today issued guidance on the 2025 standard deduction and tax brackets.

https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025

Things like IRA contribution limits are also indexed to inflation.

Anonymous wrote:Because you are benefiting by the appreciation (ie inflation) in the value of your house and your mortgage payment stays the same.

Renters are seeing increases every year.

Your suggestion is ridiculous unless you want your mortgage payment to increase with inflation.

Are you dumb? People take on new mortgages every day.

All tax write-offs for homes should be completely eliminated, including 1031s. Why is it anyone else's responsibility to subsidize your lifestyle and home? No tax breaks for homeowners in any way shape or form.

I've never understood why someone should should get to pay less federal income tax because they decided to take a mortgage.

Because from a policy standpoint, a person that can afford a $2 million mortgage doesn't need as much relief as someone that can only afford a $1 million mortgage.

Because you are benefiting by the appreciation (ie inflation) in the value of your house and your mortgage payment stays the same.

Renters are seeing increases every year.

Your suggestion is ridiculous unless you want your mortgage payment to increase with inflation.

Anonymous wrote:It does get adjusted

Before the TCJA, the mortgage interest deduction limit was on loans up to $1 million.
Now, the loan limit is $750,000.

Deduction is based on principal, so it increases when rates go up too.



This deduction limit is so high it's a total non-issue.

The deduction is too low, many people in high cost areas have larger mortgages. But its inevitable that it should be adjusted for inflation as housing pricing goes up. It just doesn't make sense. Also all the child tax credits etc anything that is a deduction or credit is stale it must be adjusted for inflation

It does get adjusted

Before the TCJA, the mortgage interest deduction limit was on loans up to $1 million.
Now, the loan limit is $750,000.

Deduction is based on principal, so it increases when rates go up too.



This deduction limit is so high it's a total non-issue.

I’ve been wondering about something that feels a bit unfair. Tax brackets and Social Security benefits get adjusted for inflation every year, which makes sense to keep up with the rising cost of living. But other important tax-related items, like the mortgage interest deduction limit and various credits or deductions, don’t seem to get the same treatment. Why is this the case? It seems like we’re penalized for inflation when it comes to these deductions, especially in high-cost areas where housing prices have skyrocketed. Does anyone have insight into why some things are adjusted while others are not? Is this something that could be changed in the future, or are we stuck with this imbalance?