HOW HOME OWNERSHIP HELP LOWER YOUR FEDERAL INCOME TAX

Dated: 01/04/2015

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HOW DOES HOME OWNERSHIP HELP LOWER YOUR FEDERAL INCOME TAX ?

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.
**Information obtained from National Association of Realtors**


Your Reliable Local Expert,

FLORIDA RODRIGUEZ, Realtor
443-739-4455
HOMESET REALTY, Inc
410-602-3232 ext 520

**"I build my business by referral, so if you happen to cross path with someone looking to buy a home or sell their homes, please remember you know someone in the business always ready to help."

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Florida Rodriguez

We just purchased our first home today and I cannot thank Florida enough for all her help. She is very professional and very thorough in assisting us since day 1. She always make herself available and....

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