purchased a home this year and need to understand how deducting property and sales tax works. i have googled this but i need an explicit answer. i understand that property taxes and interest reduce your AGI but does this mean i should expect a tax refund come march?
You need to itemize your return and give up on standard deduction. So it only makes sense if you are paying a lot (12k/year+) interest.
Actually only 2k/year+ in interest assuming property tax + state income tax exceeds 10k
Yes the amount is more than my standard deduction. So it does make sense to itemize. However, my question is does the tax benefit come in the form of a higher tax refund?
Use this calculator to find out if you get any tax benefits and also how much depending on your income https://chalkyourfuture.com/home/mortgage-calculator-with-taxes/
How is owning a home compared to renting on a monthly basis?
It's more expensive in my experience.
Then what's the point?
Owning you get all the equity upside
You might not get as much reduced your first year of ownership compared to future years. One main reason is that you haven’t had a full year to get as much as possible to write off. To be safe, take your tax documents to a professional. This way he/she can make sure you get as much as you can off your taxes. The following years will be much better.
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