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Werewolfdad t1_jack56e wrote

>. Can someone break it down for me ?

If your mortgage interest plus state and local taxes (and other itemized deductions) exceed the standard deduction, you may save some taxes if you itemize (which seems likely at your income level).

That said, I don't remember the threshold for the AMT under TCJA so that may complicate things

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Accomplished-Can-912 OP t1_jackefm wrote

Thank you for the reply !

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Werewolfdad t1_jackgxz wrote

Just for clarity, owning a home doesn't necessarily save you on taxes, but having a mortgage can

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dissentmemo t1_jacm1l4 wrote

Right, technically it's when you don't yet own the home that you're getting a tax benefit, if any.

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Accomplished-Can-912 OP t1_jacoxwy wrote

Can you elaborate a bit more on that

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dissentmemo t1_jacrx3f wrote

Just what werewolfdad says. You can get a benefit for having a mortgage, and specifically, mortgage interest, if you can itemize. Once the mortgage is paid off, you don't get a tax benefit anymore.

But then you aren't paying for a mortgage anymore either.

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