FYI Buy a house NOW!

z31maniac wrote: If you're saying there wasn't a spot to enter your mortgage interest, you're doing something wrong with the Tax software you are using. You may want to get some paperwork together and file amended returns.

This x10. Javelin, no disrespect intended, I think you might need to read up on both taxes and mortgage stuff, and maybe some personal finance, because you may be losing money you are entitled to! Here is the IRS form to report real estate taxes, PMI, and mortgage insurance. Also note you can deduct state/local income tax OR sales tax, but not both. You can also deduct personal property tax (such as cars, boats, etc.) if your state has that:

You are correct that it isn't a one for one savings, that's a tax credit, not deduction. If I make $100,000 (I wish!) and pretending one size fits all bracket of 25% for easy math, I would owe $25,000 in taxes. If I paid $10,000 in interest on a mortgage and $5000 in property tax, those don't reduce my BILL by $15,000 (would owe $10,000), they reduce my INCOME by $15,000, so I only owe 25% of $85,000, or $21,250, a savings of $3,750.

best time to buy?

z31maniac wrote: If you're saying there wasn't a spot to enter your mortgage interest, you're doing something wrong with the Tax software you are using. You may want to get some paperwork together and file amended returns.

For cereal? We used HR berking block! Dammit!

In reply to Flynlow:

The Schedule A for 2012 has this disclaimer: "Note. Your mortgage interest deduction may be limited (see instructions). "

Maybe that's what got me? I'll look it up ASAP though!

Yes, use TaxAct.com from now on.

Or if you feel so inclined, use a tax pro. You can write-off their fee for preparation.

Remember, if this is something you've missed in the past, I believe you can file amended returns for past years.........but I'm not 100% on that.

T.J. wrote: best time to buy?

Wow, that was eye-opening!

Regardless of all the tax bennies, the best reason to buy is that you can do anything you damn well please to the house!!

You can paint the walls babyE36 M3 yellow if you want.

You can rip down that foil wallpaper from the 70's that's still up in the dining room!

You can cut down that eyesore of a tree that's shading the pool and not letting the water get warm enough plus clogging the filter with it's leaves.

You can replace the AC when it goes out with one that is energy efficient and save you money each and every month instead of having to live with the cheapest and most expensive unit to operate in the world!

You can make modifications to the house and knock down walls to make it fit you.

You'll actually want to mow the yard and do the yard work because it's yours and not some landlord some place else. (OK, you won't want to all the time, but you won't begrudge doing it as much)

I've actually done all those things and more. I've owned & I rented and I absolutely hated renting!!!!!!!!!!!!!!!

Owning can also give you a choice of better neighborhoods or at least you can live in the better part of the neighborhood. You don't have to live backing up to the busy street, the school, the apartment complexes, the shopping centers. You don't have to live on the busy street corners or under the high tension wires.

Studies have shown kids of the people who own homes do better in school. I think it's the stability factor, but it's also home owners (or should I say home purchasers since very few people actually make it to actual home ownership) tend to be more involved & invested in the community and don't move around as often.

Home owners tend to have more stable jobs and a higher income, I think due to the forward thinking and the stability and the facts they feel better about themselves.

Home owners are more likely to be voters.

There's just a host of other benefits other than just the financial aspect.

There's a reason most people desire to be home owners.

Javelin wrote: In reply to Flynlow: Maybe that's what got me? I'll look it up ASAP though!

Good! I hope it helps! I'd have to re-read the 1040 instructions to confirm, but I think the limit on the deduction is a phase out for really high earners (like $150,000+), most have something similar.

As others have said, you can file amended returns for previous years (I think the past 3, but double check) if the software tripped you up before this. Imagine the car hobby funding that could come in with 3 years' worth of refunds .

Flynlow wrote:

Javelin wrote: In reply to Flynlow: Maybe that's what got me? I'll look it up ASAP though!

Good! I hope it helps! I'd have to re-read the 1040 instructions to confirm, but I *think* the limit on the deduction is a phase out for really high earners (like $150,000+), most have something similar. As others have said, you can file amended returns for previous years (I think the past 3, but double check) if the software tripped you up before this. Imagine the car hobby funding that could come in with 3 years' worth of refunds .

When you get to the point that things phase out it gets weird. There are formulas and all kinds of crazy stuff. On top of that, once you've figured it all out you get to check against the AMT to see if you've paid enough tax or if all of that checking and deducting was for nothing. If you can swing having a CPA for a mother in law I highly recommend it.

Datsun1500 wrote:

mazdeuce wrote: If you can swing having a CPA for a mother in law I highly recommend it.

What's your wife look like?

Beautiful talented and loyal. Sometimes you win at life.