I'm buying a condo and was told that I can claim anywhere from 9 - 25 in order to help me out with taxes. Could someone tell me how that works and what I should claim or who I can contact to get this information.
2007-04-04 18:27:07 · 3 answers · asked by Deepz 1 in Business & Finance ➔ Taxes ➔ United States
You should ask the person that told you that. I had thought that morgage interest was no longer deductable but I certainly can be wrong. Your best advice is http://www.irs.gov and go read. And always remember-anything the irs tells you is not valid unless you have it in writing. If you can set your condo up thru a business, that could work for you.
2007-04-04 18:57:19 · answer #1 · answered by towanda 7 · 0⤊ 3⤋
Claim 9-25 what? Allowances on your W-4 form? That would be a very unwise thing to do - you'd probably end up owing a lot at tax time, including penalties. Your tax benefit from owning the condo will be that you can deduct interest and real estate taxes. Your tax benefit from that will be the amount by which your itemized deductions exceed your standard deduction If you aren't currently itemizing, times your tax bracket. If you're single, don't itemize now, are in the 15% bracket, your itemized deductions including the condo interest and taxes plus other itemized deductions total $12,000, your tax savings would be (12000 - 5150) * .15 or $1028. That would be the equivalent of about 2 extra allowances on your W-4.
2007-04-05 04:58:34 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You can deduct your mortgatge interest and property taxes on your return if they total more than your standard deduction.
2007-04-04 18:38:01 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋