Alternative Minimum Tax

Will buying a pricier home always mean bigger mortgage interest write-offs on your taxes? No. Case in point is the alternative minimum tax; for some high-income taxpayers, the alternative minimum tax might wipe out some or all tax savings they'd receive from buying an expensive home. This can mean that if your rent is low and your income is high, you may be better off continuing to rent, rather than buying an expensive home. Talk to your tax expert about your situation.

Of course, taxes aren't the only reason to own a home. Security of knowing you can never be forced out (if you pay your taxes and pay off your mortgage), the ability to alter your home's appearance (as long as your changes are within zoning and building code and permit laws), and pride of saying you own your home are among the many reasons, in addition to the tax reasons, to buy or not to buy a home.