[Buehler445]

Nah. You don’t get to write off home mortgage interest unless you itemize. Which after Tax Cuts and Jobs Act the standard deduction is super high and virtually nobody itemizes.

Even then you’re only deducting itemized expenses OVER what the standard deduction is.

For instance, Clay, your standard deduction for 2020 is 12,400. If you make any money medical is probably kicked out as there is a 7.5% of AGI exemption. And state taxes (which would include your property tax, so as a single dude, that’s the one limit that isn’t halved for single dudes you might have something there, but whatever. Follow along) is limited to 10K. So in order to fully deduct your mortgage your SALT and contributions would have to equal 12,400.

Here’s an example with made up numbers.

2020 Clay:
Medial: $0
SALT: $2000
Home mortgage interest: $0
Contributions: $500
TOTAL Itemized: $2500. Clay is taking $12,400 Standard Deduction.

2021 Clay
Medical: $0
SALT: $7,000 ($5k additional PPT)
Home Mortgage: $8000
Contributions: $500
Total Itemized: 15,500. Clay itemizes $15500.

Marginal additional “deductible” expense: $13,000 (plus principle, which is not deductible but still comes Out of your pocket and is probably in the neighborhood of 3-4K the first year)
Marginal additional Tax Deduction: $3,100.

If you can even hit itemized, it’s not a dollar for dollar deduction. Be careful relying too much on deducting anything.

Don’t count too much on the deduction.