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by Rob Seltzer, CPA, PFS
In 2010, my wife and I bought our first condominium in Thousand Oaks for $210,000. How much will the tax write-off be since we now own a house? How much money does one get back at the end of the year for owning a home?
So to summarize your total deductions for 2010 based on the purchase of your new home would be $1,680+$1,313+$3,780 or $6,773. Now we must determine how much that deduction would save you. If your taxable income is above $68,000, then your tax bracket is 25 percent. Your combined rate with the California rate would be about 33 percent. So the tax savings using my assumptions would be $2,258. This number would be adjusted based on differences from my assumptions compared to your actual situation.
Rob Seltzer is principal of Robert Seltzer, CPA, PFS, in Beverly Hills. You can reach him at (310) 278-9944.
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In accordance with IRS Circular 230, the information on this website is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.