I see people are sometimes tempted to justify buying a home instead of renting because of the tax breaks available to homeowners. The same logic is sometimes applied when deciding to buy a bigger, more expensive house. The tax breaks, the argument goes, lessen the impact of the extra cost.
Sometimes those decisions are justified. Buying can be a good long-term decision, and the tax breaks can certainly be helpful in the right situations.
But there are also many situations in which the tax benefits of owning a home are not everything they’re made out to be. Here are three reasons why. ... Read More.