In terms of my income tax, deductibility generally kicks me back about 2 months of payments (PITI of about 2,200 a month). In my experience – it helps, and it keeps my costs (with a 20% down, 30 yr. fixed) pretty much in line with what it would cost me to rent a similar place (in Old Town, Alexandria, Va.)
BUT – what I am not sure about is where deductibility starts to lose steam if the AMT Alternative Minimun Tax) comes into play — which it hasn’t yet for me — but, I have read that it can for folks with significant property tax and state income tax as deductibles. Anyone been caught in the AMT trap?
