As previously mentioned
in our "Investment" page -
All of the interest
portions of your mortgage paid as well as your yearly property taxes you pay during the year can
be deducted from your gross income. This also helps to reduce your taxable income thus
reducing your overall tax obligation.
Confused? Don't be - let us assume your initial loan balance
on your home is $150,000 and is financed at an interest rate of 8%. During the first year
you would pay $9969.27 in interest alone. If your first payment is on
January 1st, your taxable income would be nearly $10,000 less
(due to the IRS interest rate deduction).
Again, whatever property taxes you pay during the year may also be
deducted from your overall gross income again reducing your overall tax