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rocket_beer t1_jdt5gzu wrote

Reply to comment by 123456478965413846 in Cash buy vs mortgage and invest by LoveThisUsername

The burden of proof lies in your hands.

That’s literally how this works.

You don’t arrest someone and then the prosecutor says, “well fine, you prove to me who the real murderer is then”

You don’t “average out” the interest in amortizing.

Taxes are done yearly. After year 1, how would it be mathematically possible that he would be able to use itemized deduction?

It’s simple algebra. There is an exact amount of interest a homeowner would have to pay in order for that threshold to be broken.

How is it even possible to eclipse that number? Just for paying interest?

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123456478965413846 t1_jdt5ui2 wrote

I provided you that number further up this chain. I told you the mortgage amount that would be needed for both a single and a married person to hit the itemization threshold with just interest. I have provided every number you have asked for already as well as a link to an amortization calculator. If you believe they are wrong give me the correct number.

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rocket_beer t1_jdt7t3q wrote

How much interest would a tax payer/home owner have to pay in interest in order for them to choose itemized deduction because of their mortgage interest in a year?

Think about that. You are suggesting to other adults to do something that isn’t mathematically possible…

Please stop drinking. You’re embarrassing yourself.

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123456478965413846 t1_jdt8fua wrote

The standard deduction for 2022 was $12,950 for single people and $25,900 for married couples. Your total itemized deductions would need to be more than those numbers. The information is available on the irs.gov

Instead of calling people names, perhaps provide some numbers or evidence to show that this is mathematically impossible would be helpful. I have provided the math and links to websites that will do it for you.

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rocket_beer t1_jdt9msc wrote

You are saying, that after OP puts down 30%, that his mortgage interest would eclipse $25,900 in one year?

🤦🏻‍♂️🤦‍♂️🤦🏽‍♂️

I just………

How big are you suggesting that his mortgage is? Over a million dollars?

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123456478965413846 t1_jdt9xe9 wrote

OP's initial post included a hypothetical interest rate of 5.85%. At that interest rate a single person would clear the standard deduction with a mortgage amount above $221,367 and a married couple would clear the standard deduction with a mortgage amount in excess of $442,735. Assuming a 30% down payment that means a house price of 287k if single or 575k is married. And that is with no other itemizable expenses. When you buy a house you always have additional itemizable expenses like property taxes and assuming you work or spend money you are paying state/local taxes. So an average priced house with OP's interest rate and down payment would be large enough to benefit from the standard deduction if OP is single and a slightly above average priced house would qualify for mortgage interest deductions if OP is married.

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