Whats the tax impact of owning instead of renting?
This is a CPA question, but we’ll give a general answer. Most people will be able to deduct 100% of the mortgage interest they pay, and 100% of the property taxes they pay. For example, on a $250,000 house with a $200,000 loan and a marginal tax rate of 35%, the tax savings could be 35 percent. In a 6.0% rate market, with 1.5% property taxes, the income tax savings would exceed $6,000 in the first year.
