Most people know that they can get the IRS to write off most of their mortgage payments after they purchase a home, a major advantage over renting where you won’t get to write off anything.
Every year, you can write off all the interest added on the mortgage and all the real estate taxes, which amounts to almost 90% of your home mortgage payments. Remember this since a lot of first time buyers of Fairfax VA homes for sale don’t know about.
For instance, say you are paying $1,500 per month counting in interest and taxes, which amounts to $18,000 per year in tax write-off. That means $18,000 of your annual income that doesn’t get taxed. Then based on the tax bracket you belong to, let’s assume a low 20%, this will mean that you’ll have $3,600 in taxes that you don’t have to pay.
Those amounts are still just a rough estimate because there are still individual tax exemptions that can reduce that number depending on your unique situations. We can use an even lower amount and say you keep $2,400 in taxes instead after owning Fairfax VA homes for sale and receiving the homeowner’s tax break. Next year, you’ll receive a tax refund by paying your mortgage payments regularly for 12 months. The IRS will actually give you a tax return since now that you own a home, you’ve been over-paying your taxes.
As a homeowner, you have many different legal ways to let the IRS know you wish to pay lesser taxes every month by having them apply the homeownership tax subsidy every month instead of every year. Join my free webinar to learn more about this strategy in greater detail, especially when applied to the North Virginia market. Also, you might need to consult with a tax professional who can advise you properly on annual income taxes and personal tax exemptions.
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Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, “Inside Real Estate”
Thierry & his team Guarantee a $25,000 minimum savings for Northern VA Homebuyers by applying his unique insider techniques & strategies that he discovered throughout 8 years of exclusive Radio Interviews & Insider Access to wealthy Real Estate Insiders, Investors & Top Industry experts.
Phone: (703) 222-6714.
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