[quote=XBoxBoy][quote=ncounty4]No, we don’t think that renting is a wise financial choice in our tax bracket.[/quote]
Actually ncounty4, I suggest you reconsider that. Compare these two case: 1) you buy an 800k property now, 2) you rent an equivalent property for two years, then buy.
In the first case, you will receive a tax deduction worth about 1/3rd or what you pay in interest on your loan. Depending on your interest rate, and the exact amount of your loan, I figure that deduction will be worth about 15k per year, or 30k for two years. ($720k loan times 6% interest times 34% tax bracket = $14688)
[/quote]
I think it is more like $9500, because you need to deduct the standard deduction:
(720K * 0.6 – STD ) * 0.34
