When renters are deciding whether they can purchase a home in Walnut Creek, CA and surrounding areas in the East Bay, they are told of the great tax benefits from home ownership.
While it's true that home ownership does generate income tax write-offs, the general formula provided to renters to calculate the income tax benefits is wrong.
Don't use this formula: mortgage payment + monthly property taxes x effective tax rate = income tax savings from home ownership.
The formula fails to account for the fact that some standard deductions are replaced by the itemized home deductions so the formula overstates the income tax savings, in some cases significantly.
I invite you to request the Buy vs Rent Calculator that has been specifically programmed for California residents, includes state and federal taxes and considers additional important factors such as filing status (married, head of household or unmarried), number of dependents and tax deductible 401(k) savings.
This Buy vs Rent Calculator generates a side-by-side, easy to understand Rent vs Buy comparison. Don't make important financial decisions based on inaccurate information. Request the Buy vs Rent Calculator now.
Wendy Cutrufelli
Broker Associate
925.917.1135
The positions on this site are my own and don't necessarily represent Alain Pinel Realtors' positions, strategies or opinions.
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