Tax Blog
I would like to understand the tax benefits of buying a house a bit better and how to do the math.
If I get a 400.000 loan over 30 years at a 5% interest rate, then my monthly payments will be somewhere between $2100 and $2300 (based on online mortgage calculators).
I understand that the interest on the loan is tax deductible part. Can anyone help me figuring out how much money that would save me per year?
Business Solutions Employee Time Clock Business Coach Miami Roofer HP Support IP Address Lookup Coralgables Roofing Company Speed Test PMP Training Body Bands Pinecrest Roofing Company Get Life Insurance Miami Metal Roofer
Filed under:
Tax Questions & Answers
The answer would depend upon your tax bracket. For example, if after other deductions you are in the 25% bracket, the tax savings would be the amount of interest paid that year times 25%.
In early years of the mortgage, will very likely save you some tax – in later years, very likely not. You don’t give nearly enough info to put numbers to it.
“taxreff” is correct. The dollar “savings” depends on your tax bracket – plus any future tinkering Congress does to the tax laws.