Income Tax Savings
Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less due to the IRS interest rate deduction.
Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.
Next Stable Monthly Housing Costs
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Benefits of Owning Your Own Home |
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Important Things To Avoid Before Buying a Home |
Don't Buy a Car - or Did You Already Buy One? |
The Business Cycle and Buying a Home |
Comparable Sales and Your Offer Price |
Major Factors Influencing your Offer Price |
Offering to Purchase Real Estate- the Basics |
Writing an Offer - Safeguards Regarding the Property |
How Financing Details Affect Your Offer |
How FHA and VA Financing Affects Your Offer |
Selecting Service Providers |