scaredycat in escrow….scared….

[Anonymous]

Your internal monologue cracks me up. Anyways, your itemized tax deduction will be _significantly_ larger than your standard deduction. You’re only factoring in the $16k in interest right now, but when you itemize, you’re also allowed to account for other things: state income taxes paid, property tax, vehicle licensing fees, any medical expenses not covered by an HSA, charitible contributions, any points paid to initiate your loan, etc.

I wouldn’t be surprised to see your itemized deduction ending up being at least $25k — far more than your standard deduction.

[waiting for bottom]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]

You also now get to itemize, which means you can deduct your state income tax & personal property tax, among others.

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[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]

You also now get to itemize, which means you can deduct your state income tax & personal property tax, among others.

[waiting for bottom]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]

You also now get to itemize, which means you can deduct your state income tax & personal property tax, among others.

[waiting for bottom]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]

You also now get to itemize, which means you can deduct your state income tax & personal property tax, among others.

[waiting for bottom]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]

You also now get to itemize, which means you can deduct your state income tax & personal property tax, among others.

[outtamojo]

And 3 kids too- unless he makes too much $$$.

[outtamojo]

And 3 kids too- unless he makes too much $$$.

[outtamojo]

And 3 kids too- unless he makes too much $$$.

[outtamojo]

And 3 kids too- unless he makes too much $$$.

[outtamojo]

And 3 kids too- unless he makes too much $$$.

[moneymaker]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.

[moneymaker]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.

[moneymaker]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.

[moneymaker]

[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.

[Author]

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