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Posted by Benjamin Yazersky CPA on June 20, 2008, 3:50 pm
Please log in for more thread options > Hi,
>
> We finally put an offer for a house. With regards to tax savings, when
> do you see this savings? Is it seen on your paycheck? Or is it seen on
> each annual tax refund?
>
> I've ran my numbers using various tax calculators, but they don't
> quite tell me the "how" part. I tried checking out the form for tax
> withholding at work, and I don't see any instructions for factoring in
> real estate insurance and private mortgage insurance.
>
> Just for reference, these are my numbers:
>
> real estate taxes - $3000 per year
> private mortgage insurance (pmi) - $124 per month
>
> *Note: Regarding PMI, I read that if a loan is made between 2007-2010,
> then any PMI payments from that period can be tax deductible. Is it
> true?
>
> Thanks!
>
> ========================================= MODERATOR'S COMMENT:
> - what's the loan amount and interest rate?
Purchasing a house as a personal residence should lower your tax liability.
There are many factors in play here.
What I do for clients is to prepare a tax projection to determine the tax
liability with the new house purchase.
Then, I tell the client how much to adjust their withholding from their
paychecks after reviewing the ytd paystubs.
Nothing automatically happens to your paycheck.
You have to tell your employer how much to deduct.
This is done via form W4.
Depending on the state you reside in, you may want to adjust the state
withholding too.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
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