Let's break this down into clear steps:

1. Determine Taxable Deductions: The two key deductions available to you are:

   • Mortgage interest deduction: This is the interest portion of your mortgage, which is $1,050 monthly. Since there are 12 months in a year, the annual mortgage interest deduction is: $1,050 \times 12 = 12,600 \text{ (annual mortgage interest)}$
   • Additional deductions: You also have deductible expenses, which consist of:
     • Charitable donations: $4,600
     • State and local taxes: $8,300

   Now, the total deductible expenses you can claim (mortgage interest + donations + taxes) are: $12,600 + 4,600 + 8,300 = 25,500 \text{ (total itemized deductions)}$

2. Standard Deduction vs. Itemized Deductions: The standard deduction for a single person in 2021 is $12,550. You will use the larger of the two deductions (standard or itemized). In this case, the itemized deduction of $25,500 is larger, so you will use it to reduce your taxable income.

3. Calculate Tax Savings: Since you're in the 24% tax bracket, the tax savings from the itemized deductions would be: $25,500 \times 0.24 = 6,120 \text{ (annual tax savings)}$ On a monthly basis, this translates to: $\frac{6,120}{12} = 510 \text{ (monthly tax savings)}$

4. Calculate Monthly Housing Cost:

   • For the house: The monthly mortgage payment is $1,500. However, due to tax savings of $510 per month, the effective cost of owning the house becomes: $1,500 - 510 = 990 \text{ (monthly effective cost for the house)}$

   • For the apartment: The rent is a straightforward $1,350 per month.

5. Comparison:

   • Monthly effective cost for the house: $990
   • Monthly cost for renting the apartment: $1,350

   Conclusion: It is cheaper to own the house, with a monthly expense of $990.

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Would you like more details or have any questions on the process?

Here are 5 related questions to consider:

1. What happens if you move to a different tax bracket, how would it affect your decision?
2. How does the principal payment of a mortgage factor into long-term wealth building compared to renting?
3. What if property taxes increase, how would that affect your mortgage deduction and monthly cost?
4. What other types of expenses could impact your decision between renting and owning?
5. How do interest rates impact the total cost of home ownership over the life of a loan?

Tip: When comparing renting versus owning, always consider the tax implications and how long you plan to stay in the property.