Financial Planning Case #4: Michael and Jonathan Weigh the Costs of Buying fin 2

Business & Finance
Tutor: None Selected Time limit: 1 Day

and both seem able to justify their particular choice. Michael thinks that the tax advantages are a very good reason for buying. Jonathan, however,believes that cash flow is so much better when renting. See whether you can help them

Jan 4th, 2015

True,

the tax advantaged of being a homeowner is more attractive because you can deduce mortage intereste and property taxes. The IRS will not penalized you on your "capital gain tax" or profits you make from your home. If you make the first $250,000, then you will not be taxed on it.  Cash flows is better when renting ,but you will not have tax breaks and you will not earned the equity. 

Jan 4th, 2015

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