Saturday, April 17, 2010

Mortgage Interest Tax Deduction

Article in Yahoo Finance talks about the mortgage interest tax deduction as America's costliest tax break.  This includes mortgage interest and home equity line of credit interest that is secured by a home.  Says this is sacred and politicians are not touching it amid efforts to raise tax revenue for the US.

Of course this is sacred.  Changing it means impacting almost 70% of Americans who are homeowners.  Would be political suicide.  

Simple math - if your mortgage is $3000 per month, because of the interest deduction, it's only $2000 per month after tax.  How does this work?  After April 15 when you file taxes, you'd get $1000 X 12 in refunds.

Castle Avenue Partners - Manhattan investment property

The above is not tax advice and not provided by a licensed CPA.  For tax matters, always consult your CPA.

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