what are the tax benefits in ny after buying a home?

Answer 1

The tax benefits to buying a home are that some of the money spent buying the home is tax deductible. This means that you don't have to pay income taxes on the money spent for certain things.

The tax deductible expenses are some of your closing costs and the interest spent on your mortgage.

When you file your taxes, there will be places where you can deduct your closing costs and mortgage interest. This money will be subtracted from your income to calculate your adjusted income. You will only be charged income tax on the adjusted income.

Answer 2

Tax benefits come from the interest that you pay on your mortgage. Lets say you made 40k this year and you went to go do your income tax. After completing your income tax you found out that you owe IRS 1000.00 dollars because you made over 24k that year, they will count the tax deductions from the interest money you get back on your mortgage.
example: -100.00 = being head of household, -150.00 = owning a home, 10,000.00 closing cost will all be subtracted from your income.

Plus let's say you bought a home and your monthly payment is 1,200.00 with a 30 yr fix. The interest you pay on your new mortgage is 1000.00 / principle is 200.00, there for most people interests they pay is 100% tax deductable. Lets' say your tax bracket is at the 35%, that means at the end of the year after all your interest money payment 1,000 x 12 mths = 12,000 dollars. You take 35% of that 12,000 = to 4,200.00 you get back on your mortgage income tax to pay for the rest you owe and keep the remaining. You can e-mail me for any questions if you still have questions about mortgages.

Answer 3

You can deduct mortgage interest and real estate taxes if you itemize, which might lower your annual tax bill.

The only closing costs you can deduct are those that are interest and real estate taxes, not the rest of them. Points on a mortgage for a house you are buying are considered interest and can be deducted that year. Points on a refinance have to be spread out over the life of the mortgage.