Tax Benefits of Homeownership
Tax Benefits of Home Ownership
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
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)
Reprinted from REALTOR® Magazine Online ((http://realtormag.realtor.org), with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2012. All rights reserved.