You've gotta always figure what you'd make on the money you're paying out vs. how much it's costing you, including tax deductions. Not borrowing (if you can) is usually in the end, the best financial decision when all things are taken into account. But Uncle Sam helps out a bit when you must borrow.XtremeJibber2001 wrote:So since I'm in the 25%, if I owned a home that cost $300,000 and the payments were interest only payments for the first year (say $1,000 a month) ... I'd get $3,000 back. Not bad. Now I just need a houseSkiDork wrote:You just get to deduct that from your income. So whatever your tax bracket is, you get that percentage back. i.e. if you're taxed at 33% you "effectively" get back 33% of the interestXtremeJibber2001 wrote:Speaking on ignorance here .... is the mortgage deduction a way for you to get the interest you've paid back?
For example lets say I buy a $300,000 home today. Most likely the first 12 payments will be primarily interest, so I can deduct that in my taxes and get "most" of that money back right?
Say goodbye to the IRS
-
Bubba
- Site Admin
- Posts: 26313
- Joined: Nov 5th, '04, 08:42
- Location: Where the climate suits my clothes
No mortgage deduction and many more people will rent rather than buy.
"Abandon hope all ye who enter here"
Killington Zone
You can checkout any time you like,
but you can never leave
"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function" =
F. Scott Fitzgerald
"There's nothing more frightening than ignorance in action" - Johann Wolfgang von Goethe
Killington Zone
You can checkout any time you like,
but you can never leave
"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function" =
F. Scott Fitzgerald
"There's nothing more frightening than ignorance in action" - Johann Wolfgang von Goethe