How much interest can be written off on taxes?

Hi Shaka,
Essentially all interest can be written off your taxes. If it were an investment property you would have some additional options.
Feel free to contact our team for any of your real estate needs.
Best,
francois@cozy-homes.com / 713 397 8857

Dear Shaka,
We are Realtors and not Tax Attorneys. We can not give advice for Taxes.
We are experts in the field of real estate, and keep current with any changes.
I can recommend a great tax Attorney who would be happy to help you with all your questions http://www.patbunchlaw.com/

Hello Shaka,

You can use all of your property taxes as well as mortgage interest as deductions when calculating your federal income tax returns. Always best to speak to a professional CPA or tax expert to understand how this will effect your total tax bills. But needless to say it should help VS renting.
There are other possible tax deductions for buying a home such as in the case of a relocation of more than 50 miles due to a new job. All the expenses of buying a home including your closing and moving cost could be deducted. Again, speak to an expert regarding taxes.
Realtors are here to break a complicated topic (Buying a home) down so easier to understand. Getting your head around the money involved and how it effects you is one of the first steps. Let us know if we can help you.

Mark McNitt, Bernstein Realty
832-567-4357
www.MarkKnowsHouston.com

Hi!

In most cases you can deduct all of your home mortgage interest paid on first and second mortgages up to $1,000,000 in mortgage debt if the following conditions are met:

* File Form 1040 and itemize deductions on Schedule A
* Mortgage is a secured debt to your home (signed a deed of trust - which you do if you obtain a loan on a property--- includes, first or second mortgage, line of credit on your home or home equity loan) on a qualified home (your main home or second home that has sleeping, cooking and toilet facilities) in which you have ownership interest.

There are three categoties for the mortgage to fit into to qualify to deduct all the interest paid during the year. Being that you are considering purchasing a home, you fall under the second category (Mortgages taken out AFTER 10/13/1987 to BUY, BUILD, or IMPROVE your main home and/or second home that totaled $1M or less (or $500K if married and filed separately from spouse)

You can also deduct real estate taxes and any mortgage insurance premiums.

For example, if you purchased a home in February of this year, obtaining a loan for $250,000 (at 4.5% interest), you'd have $10,243.83 in interest for 2017. The property taxes will depend on the tax rate and property value. A $300,000 house with 3.0 tax rate would equal $9,000 in property taxes for the year. Mortgage insurance premiums depend on the loan type and amount put down (as this isn't present when you put 20%+ down).

Contact your CPA for more information related to tax deductions.

Feel free to reach out if you have any additional questions. I'm happy to send over the information I sent my first time home buyers!

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217