Asked by Pa_home_buyer, 94301 • Tue May 5, 2009
In a different thread, people keep alluding to the tax savings of owning a home >$2M. My understanding is that there is no benefit. The mortgage deduction is only applicable to the 1st million financed, which at 28% under the new tax changed comes to about $18,000. Moreover, property tax in not deductible under AMT, which affects virtually every buyer in this segment. Thus, once the property tax is higher than the mortgage deduction the home owner has a higher tax bill overall.
Am I missing something? I'd appreciate links to IRS documentation that state otherwise.
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