Most people are aware that they can get the IRS to write off most of their mortgage payments once they own a Fairfax VA home, a major advantage over renting where you won’t get to write off anything.
What you get to write off annually is actually all the interest incurred on the mortgage and all the real estate taxes, which amounts to almost 90% of your monthly payments. This is something that most first time buyers of Fairfax VA homes for sale are unaware of.
As an example, say you are paying $1,500 every month in interest and taxes, resulting in $18,000 a year in tax write-off. That means $18,000 of your annual income that doesn’t get taxed. Then depending on your tax bracket, let’s assume a low 20%, this will mean that you’ll have $3,600 in taxes that you don’t have to pay.
This figure is still highly variable since there are still personal tax exemptions that can decrease that amount depending on your unique situations. So let’s lower the amount a little and say you save $2,400 in taxes instead after owning Fairfax VA homes for sale and receiving the homeowner’s tax break. You can get a tax refund after the next year just by paying your mortgage payments regularly for 12 months. The IRS will actually give you a tax return because now that you own a home, you’ve been over-paying your taxes.
As a homeowner, you have a couple of different legal avenues to let the IRS know you wish to pay lesser taxes every month by having them apply the homeownership tax subsidy monthly instead of annually. Join my free and live online 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.
~
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.
Copyright 2010 Inside Real Estate, LLC. All Rights Reserved.