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    b_silva2000's Avatar
    b_silva2000 Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Jan 16, 2013, 12:23 PM
    New home purchase, tax question
    So I bought a new home and wanted to know exactly what is tax deductible. Once I figure that out I would like to know about home much I can write off and subsequently how many dependents I should claim to maximize my monthly take-home without owing at the end of the year.
    A little info:
    I like in CA with a gross take-home of $77,000
    The loan is for $413,280.81 & 3.25% interest rate
    Monthly payment $2,701.05
    $1,841.76 P&I
    $80 home owners insurance
    $350 Real Estate Taxes
    $429.29 Mortgage Insurance
    -of the $1,841.76 P&I about $1,100 is interest each month averaged for the first year (it's actually a little more but I want to play it safe)

    So my question is, besides writing off the interest of the loan (at what $ amount I do not know), what else can I write off and what dollar amount? Then with that info how many dependents should I claim for federal?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 16, 2013, 12:38 PM
    You will be able to deduct the INTEREST portion of P&I, the real estate taxes, and the mortgage insurance.

    That's about a $29,000 annual tax deduction. That is good for THREE allowances on your W-4 by itself.

    Any income from your spouse?
    b_silva2000's Avatar
    b_silva2000 Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Jan 16, 2013, 12:40 PM
    Thank you so much!
    No I file as single and am not married. Will 3 deductions still allow me to get a little back at the end of the year?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 16, 2013, 01:21 PM
    You can claim FIVE allowances with no fear of owing a lot at the end of the year. In fact, SIX allowances is probably very safe.

    If you want to take a bit of a risk, claim SEVEN. You may end up PAYING with the tax return, but it should be well below the $1,000 limit.
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