Tax Benefits of Home Ownership

Dated: March 5 2019

Views: 91

TAX BENEFITS OF HOME OWNERSHIP

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

Assume: 

$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.

The data relating to real estate for sale on this site comes in part from the Broker Reciprocity Program of Georgia MLS. Real estate listings held by brokerage firms other than Results Realty Services are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing brokers. 


Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. 

Copyright 2019 Georgia MLS. All rights reserved. 

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