Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9,969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less due to the IRS interest rate deduction.
Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.
Stable Monthly Housing Costs
|
Alexia
678-687-6159
agallagher@kw.com |
Alexia & Bill Gallagher
Keller Williams Realty Atlanta Partners
3325 Paddocks Parkway, Suite 190
Suwanee, GA 30024
678-341-2900 |
Bill
678-687-6169
billgallagher@kw.com |