Posts Tagged ‘tax deduction mortgage calculator’
Tax Deduction Mortgage Calculator
May 31st, 2011Question: Planning for 2008 Taxes- Cash Donations to Not For Profits & Other Deductions?
I got nailed on my ‘07 taxes, was expecting a big return and ended up owing…
Part 1: In the past I have supported a number of not-for-profits. I’m looking for guidance or resources which will allow me to calculate the maximum cash amount I should donate to charity while still realizing maximum tax savings. Is there a handy calculator somewhere on the web for this? Somehow I assume its more complex than that…
Part 2: I’m already putting 8% in a 401k and contributing to an FSA. I bought a house a few years ago but I really can’t afford to live a comfortable lifestyle and support all of the bills too, and good luck selling a house at a decent price in this market! The good thing is that I do deduct mortgage interest and make a tiny piece of profit.
Any other suggestions to LEGALLY reduce my tax burden?
Sheesh.. I’m not even rich for god’s sake.
Answer: 1. NEVER spend money for the tax savings. You will ALWAYS lose as long as tax rates are less than 100%. At best, your tax savings will be equal to the amount of your charitable donations multiplied by your marginal tax rate. If you’re in a 15% bracket and donate $1,000 you only save $150 in taxes. You still have $850 less in your pocket than you would have had had you not made the donation. Therefore it ONLY makes sense to donate for the good that it does, never for any tax savings.
2. Keep up with the 401(k) deductions, at least at the level needed to get the maximum employer match if your employer offers one. That’s FREE money to you once it’s fully vested.
Only you can decide if the tax benefits of home ownership are worth it. The deductibility of mortgage interest and property taxes are modest at best, and a LOT less than most folks figure. You get no benefit at all from the portion of your Itemized Deductions that are less than your Standard Deduction. Since the Standard Deduction rises every year and interest generally shrinks, the value of the deduction will shrink over time. If your total itemized deductions are $1,000 greater than your Standard Deduction Amount, your TRUE tax savings is only $150 in a 15% tax bracket or $250 in a 25% bracket.
The payoff on buying a home comes when you sell, IF you sell at a profit. You get to exclude the gain of up to $250k if single or $500k if married filing jointly from tax. Many folks are learning that that is a hollow benefit with property values tanking in most of the country.
If you can bail at zero loss and rent a similar property for less than your total current costs, less the TRUE tax benefit, then renting makes more short to mid term right now.
Don’t become a slave to tax savings alone! Consider your total WEALTH after taxes and all expenses. Renting modest digs and investing the difference in the stock market for the long haul will generally generate MUCH more total after tax WEALTH than being a slave to a house and mortgage and maintenance and repair costs.
Historically the stock market has paid off FAR better than any gain from a personal residence ever has. Historically the gain on a home barely covers inflation in the long term, short term market fluctuations excluded. Folks who bought at inflated prices just before the market collapsed are learning that lesson the hard way right now. In some parts of the country it may take them 10 to 20 years to recover their investment and start turning a profit. But the guy who chose to rent and invest the difference in a carefully chosen stock portfolio could be a millionaire in 20 years.
Consider the tax impact of any financial decisions that you do make; not doing so can be costly. Just don’t let taxes drive the bus! That can be even MORE costly in the end!
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IRS offers tax tips for newlyweds
It may not be high on the list of wedding plan activities, but there are a few, simple steps that can help keep tax issues from interrupting newlywedded bliss, according to the Internal Revenue Service.
EverGreen13TVshowPART_1(10/30Min): GreenHouse BuildingScienc
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Tax Deduction Mortgage
January 5th, 2010
Is your current mortgage payment (Including property tax and insurance) more than 31% of your income? The governments “Making Home Affordable” program is incredibly generous, the home equivalent of the “Cash for Clunkers” program.
We (At www.illinoismortgagemods.com) have achieved mortgage payment reductions of over 50% for clients that were never late on their mortgage- they had just experienced or were about to experience a reduction in income. This includes clients that had their new mortgage payments calculated and reset based on their impending pension income rather than current employed income!
There are 37 lenders participating in the “Making Home Affordable” program and working with them makes predicting an outcome easier however, we have also achieved mortgage modification for Non-participating lenders (Including West Suburban Bank and Key Bank). We achieved our first mortgage modification in April of 2008 and have now successfully worked on behalf of our clients with most major lenders. Please contact us ASAP so that we can review your situation and determine whether the “Making Home Affordable” program is likely to be available to you.
Our attorney can be retained for only $500 upfront with any/all remaining funds due AFTER a loan modification has been offered to you. Do not pay ANY upfront loan modification fees to ANYONE that isn’t an attorney licensed to practice law in Illinois. Retain an attorney and pay for results! Please either submit the brief free evaluation request or call us at 630-687-5012. Falling Behind? Don’t Wait! If you are currently delinquent, have experienced a reduction in income or are going through savings to keep up on the mortgage then act now
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| | J.K. Lasser’s 1001 Deductions and Tax Breaks 2012: Your Complete Guide to Everything Deductible $12.39 A straightforward guide to taking tax breaks and deductions on your 2011 tax returnCompletely revised to reflect important changes in this year?s tax laws, J.K. Lasser?s 1001 Deductions & Tax Breaks 2012 will help you take advantage of every tax break and deduction that you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that ma… |
| | What Your CPA Isn’t Telling You: Life-changing Tax Strategies $11.58 This is a powerful story woven around one theme—TAX PLANNING CAN CHANGE YOUR LIFE Tackling the fundamental question asked by all taxpayers – How can I save on taxes? — attorney and CPA Mark J. Kohler empowers you to dismiss standard CPA viewpoints like your tax payment is what it is and you just make too much money. Simplified through the mastery of storytelling, Kohler invites… |
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Property tax exemptions deadline near
The year end marks the deadline for new homeowners to apply for property tax exemptions. Lake County homeowners who bought or refinanced their homes after March 1 must file at the auditor’s exemption office by 4:30 p.m today, Auditor Peggy Katona said. Porter County homeowners have until 4:30 p.m. Thursday to file for exemptions at the auditor’s office in Valparaiso. Long lines have stretched …