Is Renting Better than Buying a Home in 2024?
Learn about mortgage interest deductions, property tax deductions, home equity loan interest, home sale exclusions, and energy efficient upgrades to help you decide if you should buy or rent a home in 2024.
Mortgage Interest
Interest paid on up to $750,000 of the debt or up to $1,000,000 if the load was in place prior to Dec. 16, 2017, can be fully deducted.
Property Tax
Up to $10,000 can be deducted for state and local taxes
Home Equity Loan Interest
If you had an equity loan or line of credit, used to buy or build or substantially improve your home that secures the loan, that interest is deductible.
Home Sale Exclusion
When selling a home, if you lived in it for at least 2/5 years before selling, you can exclude up to $250,000 of the capital gain from the income, and $500,000 if Married Filing Jointly.
Energy Efficient Upgrades
The IRS now offers Home Energy Tax Credits, see the latest updates by the IRS:
Still Prefer to Rent?
Many argue that the savings on not having to maintain or upkeep is worth renting, along with the flexibility of moving as needed. Hard to decide given the interest rates today.
***Disclaimer: This article is for informational purposes and is not meant to be financial or legal advice***