Tax Benefits of Home Ownership

Wow, you know own your own home.  The benefits are just starting today.The tax deductions you can take for mortgage interest and property taxes lower the taxes you owe and you now may get a bigger refund. Here's how it works.

Let's make it easy and let's assume you are paying $900 a month in interest on your mortgage and $3600 a year in property taxes and you are in the 28% tax bracket: 
$10,800 = Mortgage interest paid  yearly 
$3,600 = Property taxes 
$14,400 = Total mortgage interest and property tax paid per year. 

$4032.00 = Amount you have lowered your federal income tax (at 28% tax rate) 
(14,400 X 0.28 = $4,032.)

Isn't that great.  A benefit to owning your own home.  You don't get that from renting!
 
When you do your taxes next year be sure to take your closing papers to your accountant/CPA
because some of the closing costs may be tax deductible.  You will also have to take your property tax bills in and your end of the year statement on your mortgage interest from the bank.  Be sure to save those items when them come during the year.

Note that mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level. 

Now that you are in your Oakland county home, or Wayne county home, or any Michigan home as you pay down the mortgage you will gain equity in your home.  It is like a forced savings plan.  A savings for your future.

Are you looking for Vacant Lake properties Oakland County MI, find them here!

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Woodhull Lake and all you need to know about buying a lake home here!

$399,900

6313 Kiev Street

West Bloomfield Township, MI

Beds: 4 • Baths: 2 full/1 partial

$2,300.00

3461 Thomas Avenue

Berkley, MI

Beds: 3 • Baths: 2 full

$109,900

6354 Buckingham Avenue

Allen Park, MI

Beds: 2 • Baths: 1 full

$1,975,000

0000 7 Mile Seven Mile Rd

Northfield Township, MI

Beds: 4 • Baths: 3 full/1 partial

$239,000

1701 MARYLESTONE Drive

West Bloomfield Township, MI

Beds: 2 • Baths: 1 full