Tax Benefits Of Homeownership

Dated: 05/04/2016

Views: 192

TM Realty @HomeSmart
Real Estate Made Easy
Text, "taxes" to 602-357-0641 to get a free property evaluation whether you are looking to buy, sell or invest.

Tax Benefits of Homeownership

Image title

The tax deductions you're eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here's how it works.


$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)

$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

Blog author image

Tyler and Kent Monsen

Tyler had goals of becoming a Professional Golfer at the tender age of 4 when he was first introduced to the game by his father. He went on to be a High School All-American and played 2 years in colle....

Want to Advertise on this Site?

Latest Blog Posts

How To Sell A House 4 New Rules That Can Make Or Break A Sale

Wanna sell your home FAST and for TOP Dollar? Follow the below simple steps and you are on your way.What's your home worth? Get a FREE valuation by clicking here... http://www.tyler.tmrealtyaz

Read More

Real Estate Market Update For The Week Of March 27 2017

TM Realty Group HomeSmartReal Estate Made Easy602-357-0641info@tmrealtyaz.comtmrealtyaz.comText, "PQL" to 602-357-0641 for a FREE credit evaluation with no obligations.... For the

Read More

10 Housing Markets To Envy In 2017

10 Housing Markets to Envy in 2017DAILY REAL ESTATE NEWS | THURSDAY, DECEMBER 01, 2016 The national housing market is largely predicted to moderate in 2017, but a handful of metros are expected to

Read More

Top 10 Reasons To Hire A Buyers Agent When Buying A House

Buying a house is a very exciting time and one that buyers should prepare for.  Whether it’s preparing to get a mortgage or shopping for houses, making a mistake when buying a house

Read More