@DN76 wrote:
Thanks.
If you split the expenses evenly, then your new deduction are $17K each.
Why would my new deductions be $17K each if I were deducting a total of $35K each in property taxes and mortgage interest, or 40K if you include the $5K to charity in you example?
But you have to look at your current situation to see how much that $17K will really increase your deductions from the free $8K you may already be getting.
Again, this I don't get. Surely a 17K deduction is better than a free 8K reduction? Or do you mean in regards how much money that actually saves me vs how much extra it costs me to itemize?
Your facts are not clear. You have given several different amounts for the mortgage and property taxes, and only recently mentioned a co-owner. You may deduct whatever mortgage interest and property taxes you actually pay. If you and the co-owner split the costs 50/50, then you would deduct half the total, whatever it is.
When you are discussing tax savings due to a new situation, the question is not "how much are my new deductions", but "how much more will my deductions be with the new situation compared to my current situation." If your current deductions are $8K and your new situation will give you a deduction of $17K, then any new tax savings comes from the new portion of the deductions. (In this example, $9K of new deductions.)
You will have to consider your current NYS/NYC tax returns to see what the effect would be of new deductions. If you print some extra copies of your 2021 return, you can add deductions and do some of the math yourself.
