Originally Posted by RonBoyd
I am curious about this issue for intellectual curiousity reasons. We haven't been able to take advantage of the "Mortgage Interest Deduction" for many years -- mainly the lack of a mortgage but also because of the Standard Deduction hurdle. It seems to me that this tax "benefit" applies only to those of very high income AND very large mortgages (high interest?). The vast majority of tax payers don't fall into that category despite what real estate salespeople may say. Am I correct in my thinking?
While you are correct in your thinking, I want to point out that other things can make itemized deductions the way to go. For example, when we rented an apartment in NY, we always itemized since our NY state income taxes put us way over the standard deduction. I think we only had an AGI of about $60K to $80K back then.
So if you are not itemizing, it's possible you live in a low tax state, don't pay property taxes and don't give any money to charity even if you have no mortgage.
You should also consider "bunching" your deductions into every other year.