Hello! I need your insight on all things that go towards getting the most efficiency when it comes to investments and taxes....key question, should I buy a house so I can have the itemized deduction on my taxes as a high income earner? Currently I have to use the standard deduction :-( ...or maybe someone will tell me that's not a bad thing??? And yes, I count my blessings and have worked very hard to get here. Like you though, I live way below my means and really look forward to leaving corporate life some day just like MMM himself.
A few things to consider:
- Housing market where I live (Colorado) is def at the top, meaning I don't see a return/gain in value quickly.
Calculated what I need to buy in order to exceed the standard deduction in the amount of interest, I have 20% and can afford it.
Have owned a home 10+ years ago so I know the in's/out's of home ownership, been a renter for years (mo rent is more than what a mortgage would be), single filing, and have no itemized deductions.
Yes, I can stay put for a few years in a house or turn it into a rental long term if I wanted to move.
I feel like I'm missing something by not having itemized deductions like many people do. Perhaps there is something else I can do to address this? Hoping to FIRE in 7 years, perhaps I move to a state with no income tax?
The overall goal....to make the most efficient use of the current income situation with the best balance of investments and tax positioning.p.s. Yes, I max out the 401K, HSA too, make donations regularly.