Today we're talking about tax deductions that are available to most everyone. The mortgage of their primary residence.
Lots of buyers are saying to me these days, “Hey, we're so excited that we bought a home because you can actually buy a home right now for less than you can rent one.” Rental rates have actually screamed up, but the news gets even better because you also get a tax deduction when you purchase a home.
What are the things that you can normally write off when you purchase a home? That would be your real estate taxes, your county taxes, and also your insurance on your home. Now, the first year that you've purchased the home, they're going to be some things that you paid for on your settlement statement as a part of the closing that you'll also be able to write off.
Going forward you are always able to write off your county tax and your homeowners insurance. Now, check with your tax preparer to make sure that all of these things are true for you because if this home is a second home rather than your primary residence, it may be a little different.
So, how much money are you going to save on taxes. Well, it depends on the tax bracket that you're in but as an example, let's say that you are in a 20% tax bracket, and you pay $10,000 a year in interest on that mortgage loan, so 20% of $10,000 is $2,000. And you spread that out over 12 months, and you can see that you're saving a great deal every month that might even pay your electric bill for example.
Check with your tax preparer, do
the math, you do have tax deductions available to you as a homeowner and you
should go get them. Congratulations!