Recently there has been a political movement brewing in the Congress to remove all or partially the home mortgage interest deduction from earned income by working taxpayers. On the first thought by many people, it would give the FARJHO concept and the FARJHO/LLC structure in the US a major boost. They are right. It will!
The economic pundits and policy makers in this country will gradually and finally wake up to the power and the benefits of FARJHO. If some of them haven’t, give them a few more years. Consumers and voters will let them know, perhaps including their own spouses and children.
As mentioned in previous blogs and the web site before, tax rules are man-made. They should not become the main reasons why people choose to alter the way they live their lives. Tax rules simply reflect the competency of the elected law makers and government admin officials of a country. Philosophically I detest all those tax oriented financial transactions and products and look down upon all those who promote them.
Therefore, although there may be many tax advantages of a FARJHO/LLC structure and it is increasingly so, we would not want to associate FARJHO with any tax advantaged financial products. We won’t have to. There are many financial, investment, neighborhood stability and social harmony aspects of economic and social merits already provided by the new FARJHO and SwapRent alternative ways for people to own homes. FARJHO does not need the tax angle to become another motivation why consumers would embrace it.