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Tax Benefits of Homeownership

By
Real Estate Agent

Raymond Gravelle tax benefitsThe tax deductions you're eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here's how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

Here is a complete guide to home tax deductions. 

--Ray

Deb & Ray Gravelle
"Team Up" with
RE/MAX Home Team Realty
(509) 771-9099 or (509) 771-0027
Debra@MoveInMosesLake.com
Free updated listings: www.ServingMosesLake.com 

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Raymond Gravelle
Moses Lake, WA

Excellent advice Philip.

Oct 18, 2009 11:55 AM