The tax advantage of home ownership.

The tax advantage of home ownership.

Here are some of the tax advantages you may see when purchasing a home in the $100,000 range based on 100% financing.

At an interest rate of about 7.00% your monthly payments would be about $665 out of that amount about $580 goes towards paying the interest which can be tax deductible. That is nearly $7000 you can deduct in the first year.

Let's estimate that your property taxes will be about $3000. These are also deductible.

Here we are only considering Federal tax returns.

Your total deductions would be $10,000. If you were in the 15% tax bracket you could be getting back an additional $1500. That is like the Federal Government paying you $125 a month to live in your own home.