nrw tax question sorry

Jackie&Justin Posted: May 01, 2006 09:53 PM

nrw tax question sorry

approx how much of a tax write off do people usually get for their mortgage? tia

Meaghan729 Posted: May 01, 2006 09:58 PM

Re: nrw tax question sorry

Posted by Jackie&Justin

approx how much of a tax write off do people usually get for their mortgage? tia

it totally depends on how large your mortgage is - you can write off the mortgage interest you pay -- and since in the beginning of the mortgage you pay mostly interest in the monthly payment, you write off more in the beginning.

HTH

Jackie&Justin Posted: May 01, 2006 10:02 PM

Re: nrw tax question sorry

Thanks, so you write off the entire interest then? So techniclly that means you don't really pay interest? sorry i am clueless when it comes to this!

ali120206 Posted: May 01, 2006 10:32 PM

Re: nrw tax question sorry

What happens is that if you itemize your deductions (which you usually do when you own a house because mortgage interest is higher than the standard deduction) your taxable income decreases so the amount of money you pay tax on is lower, resulting in a lower amount of taxes paid. It doesn't work out though that you don't end up paying interest, you just pay less in taxes.