Tax Savings analysis
(After-Tax Cost of Home Ownership Estimate)
|
|
| I. Mortgage Calculation |
|
* Loan Amount: |
$
|
* Interest Rate: |
%
|
* Total number of Monthly Payments: |
|
= Principal & Interest: |
|
* + Monthly Real EstateTax(~1% of Purchase Price/12): |
$
|
* + Insurance (~.03% of Purchase Price/12): |
$
|
= Monthly Payments: |
|
II. Taxable Income & Taxes Before Home Purchase |
* Taxable Income: |
$
|
* State & Federal Taxes: |
$
|
| III. Deductions as the Result of Home Ownership |
Annual Interest: |
$
|
+ Annual Real Estate Taxes (~1% or Purchase Price): |
$
|
* + Other: |
$
|
= Total Deductions: |
$
|
IV. a. Already itemized prior to purchase
Re-calculate Taxable Income with Home Deductions included |
Sec. II Taxable Income: |
$
|
- Sec. III Total Deductions: |
$
|
= New Taxable Income: |
$
|
OR
IV. b. Standard deduction taken prior to purchase
Re-calculate Taxable Income with Home Deductions included
|
Sec. II Taxable Income: |
$
|
* + Standard Deduction: |
$
|
= Taxable Income w/o Standard Deduction: |
$
|
- Sec. III Deductions: |
$
|
* - Deductions not available with standard deductions: |
$
|
= New Taxable Income: |
$
|
V. Re-calculate Taxes based on new taxable income as in 4a or 4b
|
* New State & Federal Taxes: |
$
|
VI. Income Tax Savings |
Taxes from Sec. II: |
$
|
- Taxes from Sec. V: |
$
|
= Annual Income Tax Savings |
|
= Monthly Savings |
|
VI. After Tax Monthly Payments |
Montly Payments from Sec. I: |
|
- Monthly Savings from Sec. V: |
|
= After Tax Monthly Payments: |
|
| |
|
|
|
