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Tax Advantage
Consult an Accountant or your Tax Preparer
After Tax Savings:
$1600 mortgage payment= $1180 rent
Buying a house is equal to adding dependents.
You can adjust your w-4’s to increase the amount of cash you take home.
Useful Website: www.paycheckcity.com
The IRS & State Tax Deduction acts as a Coupon discounting your overall taxes
You can deduct interest & Real Estate Taxes from your taxable income.
Example: $1,600 House Payment @ $245,000 Loan Amount
Annual Interest: $13,475
Real Estate Taxes: $2,000
Real Estate Taxes: $2,000
Annual Income: $45,000 (45,000 x 32.5%=14,625)
Less Interest: -$13,475
Less Real Estate Taxes: -$-2,000
Net Taxable Income: $29,525 (29,525x 32.5%=$9,595)
Equals a $5,030 Fed & State Tax Savings (14,625-9,595)
$419.16 per Month (14,625-9,595/12)
Based on a 32.5% Tax Bracket (25% FED +7.5% MD STATE).
(*Consult a Tax Advisor, )
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