Hi all,
I'm currently a renter and am trying to put together a break even analysis on when it would make more sense to purchase a small home or condo. Can someone let me know if I'm looking at this correctly? As I see it, the only interest deduction that should make a difference in my analysis is the marginal interest amount that puts me over the standard deduction of $6,100, taking into account other itemized deductions. I currently just take the the standard deduction.
So, assuming that I had $2,000 in other itemized deductions and paid $7,000 in mortgage interest, then the only amount of additional deduction that I would get is $2,900 ($7k+2k-6.1k=2.9k). Am I looking at this right?
Two quick additional questions - does property tax somehow get baked into your monthly payment, or is that just a yearly payment that you make? Also, are there any other deductions that I should be factoring in?
Thanks in advance!
denefi
I'm currently a renter and am trying to put together a break even analysis on when it would make more sense to purchase a small home or condo. Can someone let me know if I'm looking at this correctly? As I see it, the only interest deduction that should make a difference in my analysis is the marginal interest amount that puts me over the standard deduction of $6,100, taking into account other itemized deductions. I currently just take the the standard deduction.
So, assuming that I had $2,000 in other itemized deductions and paid $7,000 in mortgage interest, then the only amount of additional deduction that I would get is $2,900 ($7k+2k-6.1k=2.9k). Am I looking at this right?
Two quick additional questions - does property tax somehow get baked into your monthly payment, or is that just a yearly payment that you make? Also, are there any other deductions that I should be factoring in?
Thanks in advance!
denefi