I was asked if i buy a house with cash, if i would get tax breaks like i would if i were to make monthly payments to a bank. could anyone please shed some light on this for me?
You would not have any mortgage interest to deduct, so unless your local state or city has some program for it I believe there is no tax benefit. It will only be a great investment, not anything more ;)
Even without the deduction for interest you will still have much more money in your pocket. With the deduction you are effectively paying the interest with pre-tax dollars. But you're still paying. With cash you're not paying the interest at all.