Is it just my tax rate against the interest portion of the monthly payment?
2006-10-02 07:43:21 · 5 answers · asked by TJL 2 in Business & Finance ➔ Renting & Real Estate
Assuming you have enough other deductions to file an itemized tax return then you are basically correct. Of course you can also deduct any property taxes you pay on your home.
The savings should be estimated using the highest incremental tax bracket that you are required to pay.
2006-10-02 07:52:56 · answer #1 · answered by oil field trash 7 · 0⤊ 0⤋
Apply your marginal rate to the greater of:
The difference between your standard deduction and your itemiezed deductions including the mortgate interest.
OR
The difference between your itemized deductions without the mortgate interest and your itemized deductions with the mortgage interest.
2006-10-02 15:04:28 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Interest payments and improvements are tax deductable, but not repairs.
2006-10-02 15:19:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You need the infernal revenue to tell you that one here from our research department:
INTERNAL REVENUE SERVICE (IRS)
IRS publication on Home interest deduction: http://www.irs.gov/publications/p936/ar02.html#d0e1835 and or: http://www.irs.gov/faqs/faq3-6.html
IRS: Tax information when buying a home: http://www.irs.gov/publications/p530/ix01.html
IRS: Deductible costs when purchasing real property:
http://www.irs.gov/publications/p551/ar02.html#d0e2000
IRS: Gain and losses on real property:
http://www.irs.gov/publications/p544/ch01.html
IRS: Time to keep records: http://www.irs.gov/businesses/small/article/0,,id=98513,00.html
Happy research
Buena Suerte
2006-10-02 14:57:56 · answer #4 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
Try the links in http://www.hot8sites.com/mortgage/ for all information on mortgages
2006-10-03 14:10:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋