4.E.43 Question Help Consider the following choices between paying rent and making house payments. Including...
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4.E.43 Question Help Consider the following choices between paying rent and making house payments. Including the amount saved by taking the mortgage interest deduction, determine whether the monthly rent is greater than or less than the monthly house payments during the first year. Assume the person itemizes deductions. A person is in the 35% tax bracket. The apartment rents for $1300 per month. Her monthly mortgage payments would be $1800, of which an average of $1700 per month goes toward interest during the first year. Choose the correct answer below. O A. It is cheaper to own as the entire mortgage payment is tax deductible. OB. It is cheaper to own as the difference between mortgage expense and mortgage deduction amount is less than the monthly rent. O C. It is cheaper to rent as the difference between mortgage expense and mortgage deduction amount is greater than the monthly rent. OD. It is cheaper to rent as the monthly rent is less than mortgage payments
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