re: It is criminal how you can't claim Student Loan interest on tax but can Mortgage

About the level of effort necessary to be competitive here

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Additionally though, every 2 years eligibility renews for a $500K home sale tax exclusion on profits. Realistically the only way one generates a (second) $500K profit over a 2-yr window is to own a second hom

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Primary residence, that you occupy 2 of the last 5 years. It’s a capital gain exclusion, and there are exemptions from the 2 year rule that realistically, only a normal person would have (medical issues, new job, even crime, it’s subject).

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You're correct of course, there really is no justification for the tax break differential.

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I already provided one, one is in the itemized category and the other isn’t. If you actually follow the max $750k in loan proceeds, it hasn’t been all that helpful in getting over the standard with rates the way they have been (but that’s obviously changing).

It seems silly to discuss the fairness of the tax code, in terms of deductions, by bringing up the only deductions available to individuals

Op, you want to write off student loan interest? Start a business, refi the student loan with a business loan. Now there is an entire chapter in the limitation of that interest, but at least we are now talking about how high earners actually save on taxes (deductions that aren’t on a 1040).

The government really should incentivize student loan payoffs through tax breaks since they are solely responsible for pushing up tuition by providing stupid amounts of money through student loans.

There seems to be other problems in your financial accountability you should
focus on.

If you are itemizing deductions instead of taking the standard deduction, then it seems like you have the financial means to pay off $85k student debt so you do not have the interest problem. ??

It isn’t the point of your post, but I make in the mid 200s and ain’t no way I could buy a $750K home.

I mean, maybe if I were single… but not with two kids and a wife and maxing out 401K contributions, saving a little, and the like.

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Student loans are the result of people spending the loans on degrees that are basically worthless

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Interesting premise. FWIW, I spent my student loans on LSU Med School. The result was a degree which was far from "worthless."

The real simple way to fix education costs is charge schools for non-Pslf based forgiveness (the 20/25 year IDR forgiveness).

If you graduate people that can’t pay off their loans in 20 years, you’re not doing society a service.

Don't take loans out for shite you can't afford, dumbass.

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Margin interest is not a capital loss. It's only deductible to the extent you have interest, dividends, and capital gains.

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Apples and oranges. This is not something requiring in the weeds analysis. The OP made an observation. There was some "yeah, but ...." financial mumbo jumbo in response.

The point is, interest on student loans is not deductible. Interest on money borrowed against a portfolio is deductible as a capital expense.

But yeah, in the unique instance of declared losses equaling/exceeding gains, then deduction of capital expense is moot .... as likely is the employment status of the responsible investment advisor(s).