No. of Recommendations: 2
<<1) Buying and moving to a more expensive house with a larger mortgage to obtain a larger mortgage interest deduction. This seems to go against the usual advice to pay off your home as you approach retirement and trying to simplify ones life.>>

As I have aged, I now realize that spending $1.00 to save $0.35 appears to be a waste of money. Now, I just happily pay the taxes. I see no purpose in purchasing a home with a larger mortgage to save money on taxes.

In addition, it may be that you will be subject to AMT. In that event, all of your mortgage interest on the newer, larger improved home may not be deductible.

We have a great Board here on TMF called Tax Strategies. I believe it is under "Personal Finances" and the sub-heading is Tax Strategies. It is "manned" by very knowledgeable tax experts. Why don't you join us on that Board for some sound advice.

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