Posted August 24, 2008
It's bad enough that John McCain doesn't know how many homes he and wife Cindy own. But does he realize that he lives in subsidized housing?
The McCains, like other wealthy homeowners, can take advantage of American tax laws that provide substantial tax breaks for the rich . The McCains can take deductions on the interest from outstanding mortgages up to a total of $1 million on two homes. Because they are in the top (35%) tax bracket, they can get a tax break of as much as $25,000 a year. (This assumes a fixed-rate 30-year mortgage at a 7% interest rate). In addition, they can get deductions on their property taxes and on capital gains (up to $500,000) when they sell a home. (Since they file separate tax returns, and Cindy's the wealthy member of the couple, it's most likely that she gets the tax breaks).
According to recent reports, John and Cindy McCain own at least 10 houses in Arizona, California, and Virgina worth an estimated total $13.8 million. These include two beachfront condos in Coronado, California, a condo in La Jolla, California, a two-unit condominium complex in Phoenix, Arizona, three ranch houses outside of Sedona, Arizona, a high-rise condo in Arlington, Virginia, a rental loft, and a loft they bought for their daughter.