Homeowner tax deduction

[GasX]

I am looking at a house that has MUCH higher taxes than the other houses I have looked at and am wondering how it will affect the net finances.

If one property is $10K/year and another is $16k a year, then there is a $500/month difference.

What is the difference after deducting it from your federal burden?

 

[BrunoPuntzJones]

Goes on your SCH A itemized deductions.

 

[bradruth]

Bear tax? What the hell is this? I pay the Homer tax!

 

[homestarmy]

You can deduct interest... but can you deduct property taxes and all? What all CAN YOU deduct?

 

[BrunoPuntzJones]

Originally posted by: homestarmy
You can deduct interest... but can you deduct property taxes and all? What all CAN YOU deduct?

Interest on primary mortgage (home equity loans don't count)
Property tax

Edit: Remember it's itemized

 

[kranky]

The impact on your taxes would be easy to figure as long as (1) you already itemize deductions, and (2) you know what tax bracket you are in. Chances are it's 25% or 28%.

So if you already itemize, you will have an additional $6000 in itemized deductions, which would save you about $1500 in taxes. That's assuming you're not subject to the Alternative Minimum Tax.

But having said that, I cannot believe the property taxes on your prospective house are anywhere near $16,000, or even $10,000. That's an unbelievable number.

 

[GasX]

Originally posted by: krankyBut having said that, I cannot believe the property taxes on your prospective house are anywhere near $16,000, or even $10,000. That's an unbelievable number.

Sadly, it is more than that. Yay for jacked up property values in New Jersey...

 

[FoBoT]

Originally posted by: kranky

But having said that, I cannot believe the property taxes on your prospective house are anywhere near $16,000, or even $10,000. That's an unbelievable number.

I have heard of stuff like that on Long Island, it is crazy what they pay

 

[Fiveohhh]

I thought my friend had it bad with 2800...

 

[DrPizza]

Originally posted by: BrunoPuntzJones

Originally posted by: homestarmy
You can deduct interest... but can you deduct property taxes and all? What all CAN YOU deduct?

Interest on primary mortgage (home equity loans don't count)
Property tax

Edit: Remember it's itemized

Unless I'm mistaken, and that'd be because the loan managers I've been working with for the past few days are mistaken, home equity ARE tax deductable. Or, at least, a home equity line of credit.

 

[KK]

Originally posted by: DrPizza

Originally posted by: BrunoPuntzJones

Originally posted by: homestarmy
You can deduct interest... but can you deduct property taxes and all? What all CAN YOU deduct?

Interest on primary mortgage (home equity loans don't count)
Property tax

Edit: Remember it's itemized

Unless I'm mistaken, and that'd be because the loan managers I've been working with for the past few days are mistaken, home equity ARE tax deductable. Or, at least, a home equity line of credit.

Yeah, I believe they are deductable. I've never heard the latter, except for this thread.

16,000 for taxes, yuck. Makes my 1000 dollars look minute. Of course my house is 1/5 the cost of yours.

KK

As far as the taxes and deducting. If you pay 30% taxes, then on your 10000, you're actually paying ~7000, so on 16000 taxes, you'd pay ~11200.

 

[Mill]

800 in taxes here on a 212k house. I couldn't pay as much as you people.

 

[DrPizza]

Originally posted by: Mill
800 in taxes here on a 212k house. I couldn't pay as much as you people.

It's weird how it all kinda works out though...
I've noticed you can get a heckuva lot more house for your money when the taxes are high... A 100,000 home here would have 3000 in taxes, but would be the equivalent of a 200,000 or even as much as a 500,000 house someplace where taxes are low. (I found a home in S.C. identical to my own 50K home - except the one in SC didn't have the garage and didn't have even half the yard I have, but it cost 250K in S.C. - the biggest reason I stayed in NY)

 

[kranky]

Originally posted by: Mwilding

Originally posted by: kranky But having said that, I cannot believe the property taxes on your prospective house are anywhere near $16,000, or even $10,000. That's an unbelievable number.

Sadly, it is more than that. Yay for jacked up property values in New Jersey...

:Q :Q
$16,000 a year? For property taxes? That's more than my mortgage payment and taxes combined.

I'm surprised that people don't move to an area with lower taxes considering the savings would have to be huge. If I could save thousands of dollars a year in return for a little longer commute, I'd do it. Or is there no place with cheaper taxes?

I can't imagine how anyone can afford to live there in retirement!