Benefit of itemizing mortgage interest and property tax when you own a home
I feel like I see a lot of people not considering this or comparing rent cost to PITI without factoring in the tax savings from owning. In my case I save approx $6000 in federal taxes from those deductions vs only claiming the standard deduction. $500 month can make a big difference for budgeting and close a big part of the gap in the difference between owning and renting. I feel like many are quick to point out the hidden costs of homeownership like maintenance and repairs but aren’t so quick to share how much you can save too. I understand cheaper homes won’t surpass the standard deduction amount but in HCOL areas like California they absolutely will and these high cost areas are often where people complain the most about housing costs.