Question:

What are the effects of mortgage payment tax deduction – should I rent, or should I become a homeowner?

Answer:

The mortgage payment tax deduction benefits are so great that most often than not, no matter if the borrower is married with or without children, or what tax bracket their income falls into - the advantages of buying and owning a home will almost certainly outweigh the benefits of renting.

Mortgage Interest Payment Tax Deduction Benefits

Fulfilling the American dream of owning a home, not only it turns out the same to pay rent or mortgage premiums but it comes out cheaper. Basically, you are paid money to become a homeowner.

Interest on mortgage purchases can be deducted for up to $1 mil mortgage debt used for acquiring first or second home. Additionally, an extra $100,000 home equity debt is eligible for interest tax deduction of the mortgage payment.

For more specific details on mortgage payment tax deductibility, please refer to MortageQnA's relevant answers, or to the IRS website for IRS informational publications. If you need to file your taxes with respect to IRS mortgage interest payment tax deductionrules you may need a tax professional to help you.

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