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marigolds6 t1_it8t04u wrote

Reply to comment by cuicocha in Many countries have a "hidden welfare state" for incumbent homeowners, as governments subsidize homeowners through the tax system. The homeownership welfare state is strongest in the US and other Anglophone countries, but weakest in the Scandinavian countries. by smurfyjenkins

Correct. Homeowners have to use part of their house exclusively for a business use in order to deduct their housing costs, outside of the itemized deductions specifically for mortgage interest and other taxes paid. You cannot deduct your mortgage principal, insurance, utilities, etc. otherwise.

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cuicocha t1_it8vm4t wrote

Thanks. Could you please add clarifying text to your original comment, saying that this is for business use only? The vast majority of renters are not able to deduct any of their rent, and no renters can deduct all of their home's rent.

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marigolds6 t1_it8ybep wrote

Yep, I added that. Thing is, the vast majority of homeowners are in the same exact boat as renters: they cannot deduct any of their housing costs either.

The mortgage interest and property tax deductions can only be taken by a small number of home owners and the business use deduction can only be taken for part of your home if you have an exclusive business use.

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