Expert: Dick Dennis - 6/14/2006

Question
Ok, Thank you..One more question..having a home is it a big tax deduction?


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Followup To

Question -
Hi,

I am single with no childrens. I am making around $45-50k a year. I currently have no deduction. I plan on purchasing a home in the next few months. WOuld purchasing a home be a tax write off? Would the write off be big enough for me to claim 2 exemption on my federal and state tax withholdings? Thank you.

Alex Ngo

Answer -
I strongly suggest you consult with your tax expert (accountant or attorney) to get a better answer to that question, Alex.

I do wish you well.

Dick Dennis          dixiedee13@aol.com

Answer
It depends on your tax bracket. Let's say you're in the 15% tax bracket. In owning a house you will be paying interest on your mortgage. Say, you have a $150,000 mortgage. In the course of a year you would be paying about $8,000-$10,000 in interest a year. When you enter that figure in your deductions list, it'll actually be subtracting about $1,200 - $1,500 in actual tax dollars from any tax you would otherwise have to pay.

When you talk to the tax expert, be sure to verify what I have just told you.

I do wish you well.

Dick Dennis          dixiedee13@aol.com