Post-2017 TCJA the standard deduction usually beats itemising. The MID toggle shows exactly when it earns its keep and when it's just folklore.
$114,666 advantage at year 10
Renting plus investing wins clearly. Combination of high invest return, modest appreciation, and short-to-medium horizon. MID is unlikely to flip this.
Post-2017 TCJA, MID only helps if itemised deductions (mortgage interest capped at first $750k loan + $10k SALT) exceed the standard deduction. For most middle-income buyers the standard deduction wins; for high-income coastal buyers MID can still meaningfully help. Set the toggle to model both.
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When mortgage interest + capped SALT exceeds the standard deduction ($29,200 MFJ / $14,600 single in 2025). For a $400k mortgage at 7%, year-1 interest is around $28k, combined with $10k SALT that's $38k, comfortably above the MFJ standard deduction. For smaller loans or lower rates, MID often doesn't beat the standard deduction at all.
State and Local Tax deductions are capped at $10,000 (TCJA). High-tax states (CA, NY, NJ) have $20k+ in SALT for many homeowners but only $10k counts. That's the main reason MID benefits don't scale linearly with property value in expensive states.
No, AMT was largely defanged by TCJA (high exemption + phase-out). Very few households trigger AMT post-2018. If your scenario does (extraordinary state taxes plus large ISO exercises), the MID benefit shown is overstated.