Property Tax Deduction

See: Mortgage Tax Deduction. Interest on mortgages is directly tax-deductible. At least up to $500k worth these days.

Property taxes are deductible as well, up to a point. Each state generally has its own tax system. In California, taxes are set at 1.25% of the purchase price of a home, and they then go up with inflation over time. So if you've paid $500k for a dump in Silicon Valley, taxes will be a bit over $6k. And all deductible. Makes paying for that dump a bit less painful.

See: Tax Deduction.