• Home
  • About
  • Residential Search
    • Multi-Family Search
    • Rental Search
  • Featured Listings
  • Lots and Land
  • Developments
  • MBSTEADMAN@CBBURNET.COM
  • (612) 296-0900

Tax Benefits of Homeownership

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)

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.

  • Real Estate News
  • Metro Markets
  • Finding A Loan Officer
  • The Loan Process
  • Mortgage Glossary
  • Communities
  • Metro Schools
  • MN Schools
  • WI Schools
  • Calculators

Contact Us

CELL: (612) 296-0900
MBSTEADMAN@CBBURNET.COM
COLDWELL BANKER BURNET
201 EAST LAKE STREET, #100
WAYZATA, MN 55391


Licensed In Minnesota
All information deemed reliable but not guaranteed and should be independently verified.

Powered By WordPress | © 2021 MightyAgent