Mortgage Interest Deduction

[Robert Jordan]

Hi all. I’m a prospective buyer located in Chicago looking to purchase a 2/1 condo and rent out the second room to a friend. I’ll be able to put 10% down on a roughly $350,000 unit, and will be using this opportunity to get a start in the RE investing world.

I have a question that I think many of you might consider fairly straightforward, but I would like to confirm that my understanding from research matches the reality of things.

My question is this: I understand that the current standard deduction for 2022 is $12,950 for single taxpayers. Assuming I pay greater than $12,950 in interest, I would benefit from itemizing my deductions, correct? For instance, if I paid $20,000 in interest during year 1, is it correct to say that my taxable income would be reduced by $7,050 more than if I did not itemize, and I would receive this benefit on my annual tax return?

I plan on reaching out to a tax professional at some point before I buy, but would like to be as well-informed before that conversation as I can.

Thanks for your input!