Question : how much will be my tax saving if I purchase a single family home ?
Basically how much can I save as tax ? . What is the maximum amount can I deduct from my income ?. Now I live in rental apartment.With regards,
- asked by i-love-god
All Answers:
Answer #1
Assuming that you are in the US.....Interest paidon a mortgage is deductible. Rent is not. Onceyou have a mortgage, you should be able to itemizedeductions. Other itemized deductions includemedical expenses (in excess of 7.5% of yourincome), state taxes, property taxes, andcharitable deductions.There is no way to tell howmuch you would personally benefit on your taxesfrom owning a home without knowing all of yourdetails.Keep in mind, while buying a house is agood thing to do, it is not the huge tax windfallthat some people (ie real estate agents andmortgage brokers) would have you believeespecially in the year of purchase.
- answered by Wayne Z
Answer #2
You may deduct all interest paid on your mortgage,any points paid to obtain the mortgage (notclosing costs of any other kind, and propertytaxes paid on the residence. Without knowing anyother particulars, it's impossible to say how muchyou will save.When attempting to calculatesavings, you need to determine the amount of thesedeductions available to you, then deduct thestandard deduction amount (you get that anyway)and calculate the percentage bracket of income taxyou are in for the excess amount you can deductOVER the standard deduction.
- answered by acermill
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