Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing...
by insane_dreamer on Thursday September 15, 2022 @12:04PM
(#32854095)
However you can write off your mortgage interest payments as a tax-deductible expense, which you don't benefit from as a renter; plus you're building equity that you can then resell later. There are always exceptions, but generally in the long run, at least in the US, you're much better off owning than renting.
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Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing...
by lotsofpulp on Thursday September 15, 2022 @12:34PM
(#32854553)
Mortgage interest deduction is only available for people who itemize, i.e. people who owe more federal income tax than the standard deduction. Per IRS statistics, only 11% of tax filers itemized in 2019. I would bet this deduction does not benefit anyone who is struggling to decide between renting or buying.
Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing...
by smileysteve on Thursday September 15, 2022 @02:20PM
(#32856240)
With increasing housing costs and property taxes; it's getting easier and easier to surpass the standard deduction. If your state has income taxes, even easier.
Example scenario: New >$3000/mo mortgage, $2000/mo to interest and property taxes = $24k. Have a 5% state income tax?, on $60k, that's another $3k deduction.
Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing...
by sure_about_that on Thursday September 15, 2022 @01:53PM
(#32855876)
==I would bet this deduction does not benefit anyone who is struggling to decide between renting or buying.==
I can tell you from personal experience that you are wrong.