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I am in a dilemma- to rent or to buy a house?
I will be a full-time student in the fall. Previously, I have been working full-time but that will end June 30. My husband will continue to work full-time. We have 2 young children- one is in daycare.
There are so many factors to consider...
1. The tax advantages of buying- Will it really benefit us to buy a house? We currently own a house in another state that we rent out, so we are getting a business benefit from that by taking a loss every year.
2. Would we even be able to itemize? Interest on our house payments won't come close to the standard deduction for married filing jointly. And we don't usually have enough other deductions- unless the business writeoff mentioned earlier would apply, but I think our accountant lists this in another category.
3. Is tuition paid with loans deductible (up to the $3000 deduction limit)? How would that factor into potential tax savings? Or how would education credits impact deductions?
4. Buying a cheap, small house to live in for 4 years vs. renting a cheap, small house for 4 years and then buying the house we really want
We are meeting with the accountant next month to discuss this along with doing our taxes, but I'd like other opinions.
Thanks!
I will be a full-time student in the fall. Previously, I have been working full-time but that will end June 30. My husband will continue to work full-time. We have 2 young children- one is in daycare.
There are so many factors to consider...
1. The tax advantages of buying- Will it really benefit us to buy a house? We currently own a house in another state that we rent out, so we are getting a business benefit from that by taking a loss every year.
2. Would we even be able to itemize? Interest on our house payments won't come close to the standard deduction for married filing jointly. And we don't usually have enough other deductions- unless the business writeoff mentioned earlier would apply, but I think our accountant lists this in another category.
3. Is tuition paid with loans deductible (up to the $3000 deduction limit)? How would that factor into potential tax savings? Or how would education credits impact deductions?
4. Buying a cheap, small house to live in for 4 years vs. renting a cheap, small house for 4 years and then buying the house we really want
We are meeting with the accountant next month to discuss this along with doing our taxes, but I'd like other opinions.
Thanks!