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Financial Planning / Tax Strategies
|Subject: Question Re: Mortgage Interest Deduction||Date: 2/9/2001 11:58 AM|
|Author: Cherise31||Number: 46043 of 121261|
I have a question for anyone who is good at taxes. We are buying our first home. We are currently in a condo, but have a low mortgage. Our new mortgage loan amount will be around $252K. After calculating the tax deductible interest costs, I figure our interest costs will avreage around $18,000 for the first several years. My mortgage broker also told me we will have a tax deduction of $17,000 to $18,000 for the first seven years.
I want to know what this means to my tax return. Each year we get a return and do not have to pay. Assuming we file single (we are not married) in the 28% tax bracket. Not including other factors (ie. interest earned), what would the increase be in our yearly tax return?
I have figured it this way:
18,000 x 28% -= $5,040.00
Does this mean our additional tax return on the new home will be around $5,040?
We want to make sure we are covered with our tax return to pay our property taxes if we don't include them in the monthly mortgage payment.
Any info would be appreciated.
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