Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Houston
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-31-2017, 07:59 PM
 
26,147 posts, read 21,368,471 times
Reputation: 22731

Advertisements

Most people buy more house than they'd rent so straight comparison doesn't really work. Secondly close to half of mortgage holders claim the standard deduction meaning they derive no taxable benefit for federal income tax purposes from paying mortgage interest and property taxes

Median home sales price is around 300k so average p&i isn't anywhere near 2500.00
Reply With Quote Quick reply to this message

 
Old 01-31-2017, 08:53 PM
 
36 posts, read 46,756 times
Reputation: 26
I know renting you are still paying towards property tax, but I am still amazed people can pay 5-10K in property tax a year. I also believe most people claim the standard deductions vs itemized deductions especially if you are just regular company man/woman regardless white or blue collar.
Reply With Quote Quick reply to this message
 
Old 01-31-2017, 09:18 PM
 
15,088 posts, read 7,138,928 times
Reputation: 18957
Quote:
Originally Posted by cbg19 View Post
I know renting you are still paying towards property tax, but I am still amazed people can pay 5-10K in property tax a year. I also believe most people claim the standard deductions vs itemized deductions especially if you are just regular company man/woman regardless white or blue collar.
If you have a $300k mortgage, your interest and property taxes will put you well over the standard deduction, and you are then in a position to also take the deduction for state taxes, in our case the sales tax option.
Reply With Quote Quick reply to this message
 
Old 01-31-2017, 09:32 PM
 
26,147 posts, read 21,368,471 times
Reputation: 22731
Quote:
Originally Posted by WRM20 View Post
If you have a $300k mortgage, your interest and property taxes will put you well over the standard deduction, and you are then in a position to also take the deduction for state taxes, in our case the sales tax option.

The itemization if you can do it only benefits you starting at the first dollar that exceeds the standard deduction fwiw.
Reply With Quote Quick reply to this message
 
Old 02-01-2017, 07:08 AM
 
Location: Texas
44,257 posts, read 64,062,141 times
Reputation: 73913
Quote:
Originally Posted by WRM20 View Post
If you have a $300k mortgage, your interest and property taxes will put you well over the standard deduction, and you are then in a position to also take the deduction for state taxes, in our case the sales tax option.
Meanwhile, you still have to pay a dollar to save 30 cents.
Reply With Quote Quick reply to this message
 
Old 02-01-2017, 07:08 AM
 
226 posts, read 303,395 times
Reputation: 326
I thought you knew, everyone on CD has paid for their house fully in cash.
Reply With Quote Quick reply to this message
 
Old 02-01-2017, 07:17 AM
 
Location: Houston Metro
1,133 posts, read 1,998,292 times
Reputation: 1659
My mortgage isn't anywhere near that amount. Add in the taxes other escrow items and we are having an entirely different conversation...i hate that my monthly escrow is almost exactly what my mortgage payment is lol
Reply With Quote Quick reply to this message
 
Old 02-01-2017, 08:09 AM
 
26,147 posts, read 21,368,471 times
Reputation: 22731
Quote:
Originally Posted by stan4 View Post
Meanwhile, you still have to pay a dollar to save 30 cents.
It's worse than that if you paid 12k in interest and 9k in taxes you are paying a dollar and saving less than 13 cents even at a 30% marginal tax bracket
Reply With Quote Quick reply to this message
 
Old 02-01-2017, 10:10 AM
 
391 posts, read 420,266 times
Reputation: 631
Quote:
Originally Posted by Lowexpectations View Post
Secondly close to half of mortgage holders claim the standard deduction meaning they derive no taxable benefit for federal income tax purposes from paying mortgage interest and property taxes
Solid advice. It always surprises me how widely misunderstood the mortgage interest deduction is - same thing with charitable contributions. People have this idea that tax deductible = free. I guess the mortgage brokers and charities like it that way.
Reply With Quote Quick reply to this message
 
Old 02-01-2017, 10:11 AM
 
986 posts, read 1,260,077 times
Reputation: 1043
I'm paying the dollar (or thousands of them) to live in my neighborhood. I'm not paying the high property tax just so I can deduct it.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Houston
View detailed profiles of:

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top