Mortgages at Tax Time

If you are getting ready to do your taxes, and you are renting…

P-I-T-Y! I mean really, Bro… too bad.

You are missing out on THOUSANDS of dollars! People who OWN a home, get tons of deductions you don’t… just for living in a HOME! Haven’t you ever heard the saying, “Buy a House Get a Raise!”

Mortgage Interest Deduction:

You may not deduct interest on more than $1,000,000 of home acquisition debt for your main home and secondary residence. Home acquisition debt means any loan whose purpose is to acquire, to construct, or substantially to improve a qualified home. The limit is reduced to $500,000 if you are married filing separately.

Use the worksheet on page 11 of Publication 936 to calculate the allowable mortgage deduction.

Let’s say you purchased a home in April of 2009, with an interest rate of 5.5% with a loan balance of $200,000. Your monthly Principal and Interest Payment would be $1135.

The Interest you paid April through December would be 6395.44.

This doesn’t include any other charges you might be able to write off… like TAXES on the mortgage!

So when you’re doing your taxes… just for fun… add a $6395.44 deduction in Schedule A, and see what kind of difference it makes for YOU! Remember, in addition to this deduction – folks who purchase and close before the end of June get an additional TAX CREDIT!

WoW! If you are renting… you could really, REALLY be missing out! Seriously, what could YOU do with an extra $12,000? (Tax Credit plus potential refund!)

Considering a mortgage loan to purchase your new home? Call Steve and Eleanor Thorne, Connect With Us on Facebook, Raleigh, NC 919-649-5058! Remember – USDA Home Loans and VA Mortgage Loans do not require any downpayment!