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The issue here is not the price of the home, because the price of the home is not deductible. The issue is the annual mortgage interest that you will pay, because that is your largest deduction.
If you actually owe $46,000 in taxes, you would need to divide that number by the sum of both your state and federal "effective" income tax rate (i.e., the tax that you pay divided by your taxable (not adjusted) income. The reason for this is that you don't get a dollar for dollar deduction. Your deduction is only worth the percentage value of your effective tax. For example, if you earn $200,000 taxable income before adjustments, and you will owe $46,000 in taxes, then your effective tax rate would be 46/200 = 23% effective tax. You would need to have a home loan that generates at least $200,000 in interest payments to offset the $46,000 tax liability. Assuming that you can borrow at 4.25% interest, that would be a home loan of approximately $4.7 million.
The above calculations assume that this is not a rental property, because with a rental you would also have depreciation in addition to the loan interest -- but, you would also have additional income from the rental, which may increase your tax liability.
Bot***** *****ne, to entirely erase $46,000 in tax liability, you would need to purchase a very expensive home. It can be done, but it may not be as easy as you may believe.
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