18 Reasons To Never Own A House

11. Itemized Deductions are Getting Tricky

The rules and regulations regarding itemized tax deductions are complex. So, you need to be on top of your game if you want to cash in. For example, your home mortgage interest is only deductible if you itemize on your Schedule A. This means that only a third of taxpayers qualify for this deduction. The only way you can itemize is if your deductions exceed the standard deductions.

Currently, the standard deduction rates are $12,000 for individuals, $18,000 for head of households and $24,000 for married couples filing jointly. For many taxpayers, these numbers are hard to come by. Mathematically speaking, the longer you own a house, the less your chances are of getting a decent deduction. This is because of the decreasing interest you pay on your home. The less you owe in interest, the less your deductions become.

Considering the bump in the medical expense deduction threshold, your chances of getting itemized tax deductions takes another knock. So much for saving on taxes when you own a home. With the thresholds going up and the limitations being ever more constricting, it becomes a difficult decision to own a home or not. The benefits seem to have disappeared altogether.