The rent on an apartment you like is $1700 per month. The monthly mortgage payment for a house you like would be $1900, of which approximately $1600 would go toward interest. Decide whether your monthly expense would be higher for the apartment or the house in the following cases. Assume you are single and assume the 2021 value of $12,550 for the standard deduction. 

Complete parts (a) and (b). 

a. You are in the 24% tax bracket, and besides the mortgage interest deduction, you also have deductible expenses of $4300 for charitable donations and $8900 for state and local taxes. It is cheaper to own , with a monthly expense of $ 1516 . (Round to the nearest dollar as needed.) b. You are in the 22% tax bracket, and besides the mortgage interest deduction, you also have deductible expenses of $800 for charitable donations and $1900 for state and local taxes. It is cheaper to with a monthly expense of $ (Round to the nearest dollar as needed.)

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To solve this problem we need to calculate the monthly expenses for both the apartment and the house ... View the full answer