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.
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)
PLUS - 1ST TIME HOMEBUYER TAX CREDIT UP TO $8000 AND UP TO $6500 FOR OTHER BUYERS UNTIL 04/30/10!!!
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
Published Monday, February 22, 2010 11:36 AM by Jon Becker Edit 
Filed under: Real Estate, Announcements, Finances, Buyer Information
Jon Becker - Century 21 Northland
ABR, Green, SFR, Quality Service Award
231-342-5401
www.c21jb.com for all Traverse City area real estate listings & information
