So if we assume you switch Standard to Itemized deduction before you subtracted the 10,900 lost for not using the Standard Deduction, you would first ADD those deductions listed above to the total I gave of 27,792.

Let’s assume to qualify for this purchase you would need a gross income of $150,000. My way, you buy a house, cut the lawn for a year and then choose to itemize your deductions. You paid state and local income tax (depending on your state) of about: 7,500. Then we will assume you gave 800 to charity, but had no medical, dental, or unreimbursed business expenses. So your taxable income is now reduced down to 141,700. Less the 27,792 for mortgage interest and real estate taxes would give you a taxable income of 113,908. Now you tax a tax credit for the purchase (10% of the contract price) of 4,600. Your new AGI is now: 109,308. Your Fed tax rates goes from 28% to 25% (when you go below $137,050) so you would owe Uncle Sam $19,702.

Bottom line…you pay less to Uncle Sam and you have some change left in your pocket for a rake, and a leaf blower, and a wheel barrow, and a bag of fertilizer, and a truck load of sweet peat, and some Scotts Turf builder, and, and, and…While we DO NOT sell real estate, I do cut my own grass… using my Toro Self Propelled Rear Bagger…it’s good exercise!

All the best.

By the way, does anybody really, really, really like cutting grass?