Keep in mind...

Post #54,462 by admin 10/2/02 11:25:18 AM Reply	Keep in mind... ... that you can get a portion of your house payments back in taxes. What most people aren't told and don't realize when first buying a house, however, is that you have to itemize your deductions to get the mortgage interest deduction. So if your deductions don't add up to the standard deduction in the first place, you may not get any of the interest as a deduction. Regards, -scott anderson "Welcome to Rivendell, Mr. Anderson..."
Post #54,465 by drewk 10/2/02 11:41:46 AM Reply	Exactly what happened to me Turns out I didn't pay enough for my house for this to make a difference.[1] If you're already over the standard deduction without the house you can get back a ridiculously high percentage of your housing cost through tax breaks. If you're already living frugally, though, it might not matter. Except that you may be building equity, of course. As deSitter suggested, the only time you don't want to buy is when real-estate prices are falling faster than you would be paying off, which in the first couple of years of a mortgage is barely at all. [1] We both came in to the marriage with school loans and other debt, and planned to be debt free in time to move after five years. Depending on what the market looks like come spring, we just might make it. === Microsoft offers them the one thing most business people will pay any price for - the ability to say "we had no choice - everyone's doing it that way." -- [link\|http://z.iwethey.org/forums/render/content/show?contentid=38978\|Andrew Grygus]
Post #54,466 by admin 10/2/02 11:47:18 AM Reply	One other thing though... You can oftimes finance existing debt into the mortgage, consolidating your payments and making all your current loans eligible for the deduction. IANATA (tax advisor), though, so consult one to make sure. Regards, -scott anderson "Welcome to Rivendell, Mr. Anderson..."
Post #54,473 by inthane-chan 10/2/02 12:05:36 PM Reply	Student loans are already a deduction. We got back what we would have owed last year thanks to that little loophole... ;) Considering that is our primary debt load at this point (besides my wife's "charity" work) it wouldn't help too much... :P End of world rescheduled for day after tomorrow. Something should probably be done. Please advise.
Post #54,548 by a6l6e6x 10/2/02 5:37:11 PM Reply	Also, keep in mind property taxes. When you own a property, escrow or not, you pay the property taxes and it's a deduction. So, it helps with getting above that standard deduction. Add that factor to your analysis. When you rent, you pay property tax indirectly and the owner gets the deduction (as a business expense). Unless the houses, in general, are appreciating in value, you are taking a risk. Some of the buying/selling expenses take a while to recover with the appreciation and/or tax benefits. If after some thinking, you're not sure it's wise to buy a house now, then don't do it. Alex The sun will set without thy assistance. -- The Talmud
Post #54,551 by admin 10/2/02 5:53:04 PM Reply	Interesting facet of Michigan tax law: Renters can get a "Homestead Credit" (as can home owners) based on the amount of rent paid, up to a certain maximum income. Note that it is a credit, not a deduction, and hence worth more. Regards, -scott anderson "Welcome to Rivendell, Mr. Anderson..."

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