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Mrs213
????????
Member since 2/09 18986 total posts
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When you own a home...
do you get more money back on your tax returns?
ETA: (assuming that you have a mortgage to pay)
Message edited 12/11/2010 9:09:23 PM.
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Posted 12/11/10 9:08 PM  |
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Prudential Douglas Elliman Real Estate
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Bearcat
Love my little girls!!! <3
Member since 6/10 10818 total posts
Name:
E
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Re: When you own a home...
we were just talking about this today... would love to know the answer!
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| Posted 12/11/10 9:10 PM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
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Re: When you own a home...
You can deduct the interest on the mortgage.
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| Posted 12/11/10 9:18 PM |
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JennP
LIF Adult
Member since 10/06 3986 total posts
Name:
Jenn
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Re: When you own a home...
In short: The tax advantage is that you are able to deduct the interest on your mortgage plus real estate taxes.
More specifically: It enables you to itemize your deductions on your taxes. Everyone has a choice of either itemizing or taking the standard deduction, whichever is higher. Unless you own a home, most people don't have enough deductions to make it worth itemizing. For many people, the interest on the mortgage alone exceeds the standard deduction. Then you can also deduct real estate taxes, state income tax, charitable donations, etc.
It's not really possible to answer the OP's question because it depends on how much you shelled out during the year.
Very often, though, people who buy a house and do not decrease their withholding at work get a big chunk of change back the April after they bought because all of a sudden they can itemize.
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| Posted 12/11/10 9:39 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: When you own a home...
I think JennP is right. Also keep in mind that if you purchased your home at the end of the year you are not going to see the same type of savings as would a person who owned their home for an entire year because you have yet to make the interest/tax payments.
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| Posted 12/11/10 9:54 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: When you own a home...
Yes because you can claim your mortgage, real estate taxe and home equity if you have one.
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| Posted 12/11/10 10:15 PM |
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Peainapod
Peanuts are here!
Member since 1/09 13591 total posts
Name:
Diana
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Re: When you own a home...
it has helped significanlty with our refund b/c you can write off all the mortgage interest you pay over the year.
my father said for him it was equivalent to writing off 10 dependants 
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| Posted 12/11/10 10:20 PM |
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Nifheim
allo
Member since 1/09 5476 total posts
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Jennifer
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Re: When you own a home...
we closed last year in November and we got back 2K which was really not that amazing of a return. I hope for a better return this year.
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| Posted 12/11/10 11:34 PM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: When you own a home...
Posted by Peainapod
my father said for him it was equivalent to writing off 10 dependants
I think I read that for a dependant you can write off 1,000 dollars - so yeah between interest and taxes etc you get more for the house.
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| Posted 12/11/10 11:36 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: When you own a home...
Posted by Blazesyth
Posted by Peainapod
my father said for him it was equivalent to writing off 10 dependants
I think I read that for a dependant you can write off 1,000 dollars - so yeah between interest and taxes etc you get more for the house.
Yeah.
The only problem is the taxes + interest he was paying was about five times more than the deductions themselves.
It's not like getting "free money" when you own a house. Don't buy anything solely because you "need deductions/writeoffs".
Message edited 12/12/2010 12:24:22 AM.
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| Posted 12/12/10 12:24 AM |
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Re: When you own a home...
Yes, if you paid points at closing you get that $ back. When I bought my condo in 2006' I got almost $3500 back as a tax refund.
Never got a fat refund like that since then, and now I will actually have to pay taxes for the 2nd year in a row. 
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| Posted 12/12/10 12:34 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
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Re: When you own a home...
Posted by JennP
In short: The tax advantage is that you are able to deduct the interest on your mortgage plus real estate taxes.
More specifically: It enables you to itemize your deductions on your taxes. Everyone has a choice of either itemizing or taking the standard deduction, whichever is higher. Unless you own a home, most people don't have enough deductions to make it worth itemizing. For many people, the interest on the mortgage alone exceeds the standard deduction. Then you can also deduct real estate taxes, state income tax, charitable donations, etc.
It's not really possible to answer the OP's question because it depends on how much you shelled out during the year.
Very often, though, people who buy a house and do not decrease their withholding at work get a big chunk of change back the April after they bought because all of a sudden they can itemize.
She said it perfectly!
this is what I was going to say in less formal terms
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| Posted 12/13/10 1:34 PM |
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DMT
LIF Adult
Member since 6/05 2277 total posts
Name:
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Re: When you own a home...
Posted by Nifheim
we closed last year in November and we got back 2K which was really not that amazing of a return. I hope for a better return this year.
if you closed in november you only got 2 months to claim for interest on the loan....next time you file taxes you will have the benefit of claiming this entire past year!
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| Posted 12/13/10 2:08 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: When you own a home...
It's not like getting "free money" when you own a house. Don't buy anything solely because you "need deductions/writeoffs".
I don't know anyone who would do that. I was simply curious about it. I just got married this year and just bought a house so I never had anything to deduct in the past...
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| Posted 12/13/10 6:58 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: When you own a home...
your withholdings play the biggest role in whether you get money back.
We pay ~20K in interest and over 10K in property taxes and we owed 5K last year b/c DH's withholdings were M3.
You can't get money back that you don't pay.
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| Posted 12/14/10 7:29 AM |
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Re: When you own a home...
Not for me. I didn't get much back at all. It really depends.
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| Posted 12/14/10 7:47 AM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: When you own a home...
Posted by JennP
In short: The tax advantage is that you are able to deduct the interest on your mortgage plus real estate taxes.
More specifically: It enables you to itemize your deductions on your taxes. Everyone has a choice of either itemizing or taking the standard deduction, whichever is higher. Unless you own a home, most people don't have enough deductions to make it worth itemizing. For many people, the interest on the mortgage alone exceeds the standard deduction. Then you can also deduct real estate taxes, state income tax, charitable donations, etc.
It's not really possible to answer the OP's question because it depends on how much you shelled out during the year.
Very often, though, people who buy a house and do not decrease their withholding at work get a big chunk of change back the April after they bought because all of a sudden they can itemize.
Well said.
But OP, do not confuse itemized deductions with money back.
Getting money back on your income taxes is not just depending on how much mortgage/loan interest you deduct.
It depends how you selected your tax deduction to be.
People who get a bigger chunk of money usually deduct more $$$ during the year from their income towards taxes/paycheck. Like the number of dependent, etc..
So if someone makes $100K and deducts $12K from mortgage interest and has 2 dependents on their paystub for their income contribution during the year, he/she might get less money back than someone who also has the same income and mortgage interest but only declares 0 dependent on their paycheck.
Usually itemizing with mortgage interests is more advantageous than not itemizing. But again it depends on your mortage interest amount. Come in play other loan (equity, student, etc..) and you can get a big chunk of money back.
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| Posted 12/14/10 8:13 AM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: When you own a home...
Just wanted to say... we closed on our home 1 yr ago and just yesterday we got a 1k check in the mail bc of an overage in our escrow!! It was like merry early xmas to us... And Im sure its only that large for this 1st yr bc it was highly overestimated... couldnt have been more thrilled though!!! came at such a good time!  So thats something to look forward to 
ETAL oh and now our mortgage payment went down a little bc the escrow's been adjusted 
Message edited 12/14/2010 9:09:31 AM.
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| Posted 12/14/10 9:08 AM |
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