[Kid B]

I've seen this asked a few times, but haven't quite seen the answer I'm looking for. Let's say I purchase a home for 600, put 100 down and finance 500K. Over the course of the first year, I'd guess that something like $2400 per month of my $3000(ish) payments would be interest, and just a few hundred of that principle. So, that's roughly $30,000 in interest I would pay in year one. So, it's tax time and I get to deduct that $30K (to whatever degree) on my schedule A of my 1040. What is the formula to figure out exactly how this effects my tax liability or refund? Let's say I'm in the 25% tax bracket. I'm trying to get a rough idea of the dollar figure (in this scenario) that buying would save me on my taxes at the end of the year instead of renting. (I do a lot of free-lance work and I'm taxed heavily.) Can anyone help me understand just how this deduction is taken? I know it's usually a percentage, but I can't seem to figure out what it is, in this case. A side question... how does property tax factor into this equation? Appreciate any help. Specific examples using actual numbers would be fantastic.Thanks!