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I have a question I make 114k a year and pay about 3k tax…

Customer Question
I have a question...

I have a question I make 114k a year and pay about 3k tax per month and pay 1600 for rent is it worth buying a house for 600k and pay 3k mortgage a month ? am i saving anything with that?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I am in california and I only have 35000 for down payment and rest will be borrowed from bank

Submitted: 2 months ago.Category: Tax
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Customer reply replied 2 months ago
I also make 10k worth of Bonus per year , and I live with my wife who does not work . I am a Us Citizen and my wife is a permanent resident. My FICO score is 680+ .
Answered in 3 hours by:
12/16/2017
Tax Professional: Barbara, Enrolled Agent replied 2 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,775
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Under current law, you can take a deduction for the interest you pay on up to $1 million of mortgage debt (plus $100,000 of home equity debt), which applies to your first and second homes. You can also take a deduction for the property taxes you pay.

These deductions reduce the amount of your TAXABLE income--the amount you pay taxes on.

As you probably know, the tax reform bill is currently being considered which will reduce the deduction for the interest you pay on up to $500,000 of mortgage debt, but will keep the property tax deduction up to $10,000.

Since there is no deduction for rent, it could very well be worth your while to purchase a home--even if the tax reform bill is put in place.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,775
4,775 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

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