How much are the Income Tax Deductions for buying a home?
Homeowners enjoy the only income tax breaks available to most middle-income taxpayers. Your mortgage interest is tax deductible as are the property taxes. PMI (private mortgage insurance), principal payments, homeowner’s insurance, and condo or homeowners’ association dues (if any) aren’t deductible. The tax deductions on “investment properties” are different. Having a mortgage means you can have your pay check withholding adjusted to reflect your new home investment. This increases your take-home pay. Or, you can keep your withholding where it is now and have a big refund check every April. You tax preparer may tell you that certain closing costs (including your loan origination fee) are tax deductible. We typically see income tax savings of $100.00 to $500.00 per month! One Example– One of our single SmartHomeBuyersDFW.Com clients who earns $56,000 a year is saving over $200 per month off his income taxes! SmartHomeBuyersDFW.Com Loan Officers will help members estimate their income
