Sorry ... Frist time homebuyer.
2006-10-13 16:30:32 · 6 answers · asked by ujenfo 3 in Business & Finance ➔ Taxes ➔ United States
As others has already stated, interest, points and property tax are all deductible items on your Schedule A. However, depending on your situation (income, filing status, your total deductible), you need to look at whether you are able to exceed the standard deduction in order to have the tax benefit.
If you could try to buy early in a year rather than later, so you will have paid more interest and thus increase your total deduction amount on Schedule A.
If you have a 401k, you might be able to borrow from yourself to purchase the house. Essentially, you will pay yourself instead of a bank.
Best wishes.
2006-10-14 07:15:50 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
Points in closing, mortgage interest, property taxes, home equity loan interest (home improvements), and the new one for making energy efficient improvements in your home. Federal tax laws are changing and by 2010 we will be limited on our itemized deductions. This includes mortgage interest!
2006-10-13 16:45:21 · answer #2 · answered by Emilia 2 · 0⤊ 0⤋
If you have a mortgage you can take itemized deductions and claim a deduction of all the interest you paid. Also you can deduct property taxes.
2006-10-13 16:34:50 · answer #3 · answered by walkerhound03 5 · 2⤊ 0⤋
Your interest on the mortgage and your taxes are deductable.
2006-10-13 17:11:24 · answer #4 · answered by Classy Granny 7 · 0⤊ 0⤋
Here is a good article explaining the benefits...
(some of which were stated in the other answer)
2006-10-13 16:38:06 · answer #5 · answered by Bowl O' Knowledge 3 · 0⤊ 0⤋
well after you payed it off, you never have to pay for it again, no more rent :P
2006-10-13 16:37:55 · answer #6 · answered by gets flamed 5 · 0⤊ 0⤋