Renting vs. Buying*
PURCHASE: $350,000 Loan $1670 Payment $365 Property Tax $100 Insurance Total Payment = $2135 Income $80,000 -$11,600 Deduction -$18,375 Mortgage interest & Tax Deduction -Taxable Income =$50,025 -State Tax 10% Federal Tax 15% Total Tax = $12,506 Total RENT payment= $1800 Rent Income $80,000 -$11,600 Deduction -Taxable Income $68,400 -State Tax 10% Federal Tax 25% Total Tax $23,940 Tax savings difference for the homeowner = $11,434 annual or $953 monthy RENTERS PAYMENT: $1800 HOMEOWNERS ACTUAL PAYMENT: $1182 CALCULATOR: https://www.progressivetitle.com/RentBuyCalculator.aspx *This is a only an estimate. Please consult your tax preparer for exact numbers