Reply to Calculator to determine tax benefit of buying a home?

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[quote=Anonymous][quote=Anonymous]We're hoping to buy next spring or later, been saving for DP, etc. but wonder what we can expect from the tax benefit for itemizing housing costs (interest paid, property taxes?). Are there any calculators that can help us determine what might change from renting to buying? We don't itemize now, and from what I've read, the change could amount to a decent sum, enough for me to change our withholding, [b]maybe free up a couple hundred dollars each month.[/b] FWIW, we have HHI of about $180k and are looking to buy in the $550-$650k range, 2 kids. Thanks for any advice![/quote]

Yes, you will save money in taxes.  But the money you save is money that you are paying out to the mortgage company/the county anyway.  So while you may be freeing up money via lower payroll tax deductions, you are spending more (for instance, property taxes that you dont pay when you rent) so its likely a wash.  There is no free money when it comes to the IRS.

--Just call me buzzkill.[/quote]

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