How big is the Mortgage interest deduction?
We often hear, “you should keep a mortgage on your home for the tax deduction.” I am going to explore this statement, by using actual numbers from a tax return I prepared.
Ed and Daisy (names changed to protect innocent and guilty) are married with 3 children with an AGI of $99,318. They itemize deductions rather than take a standard deduction (pre 1986 referred to as long form). Below is a list of their itemized deductions.