AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Property Tax Deduction Big in California.
Los Angeles -- The California Association of Realtors says that building up equity is only one way homeowners can build up wealth as a result of their investment.
True, in a state like California, where the median home price has increased at an average 20% annual rate over the past five years, equity appreciation is a big component of the investment value associated with residential housing. Nationwide, home values appreciated at a 7% annual rate between February 2000 and February of this year.
But homeowners also reap big tax savings, CAR noted. That's especially true in states with high property tax rates. According to a CAR briefing paper, the purchase of a single-family home in California at the current median price of $471,620 would generate a property tax deduction of about $4,700 each hear - or about 1% of the property value.
The CAR analysis assumes that the property taxes are about 1% annually of the property's value.
In addition, over a 12-month period, mortgage interest paid would total $26,750, assuming a 20% downpayment and a mortgage interest rate of 5.71%. Together, the mortgage interest deduction and the property tax deduction total $31,460 in this median home price, 80% loan-to-value ratio example, CAR said.
That translates into a total tax savings for homeowners in the 25% tax bracket of approximately $8,000 for the first year of homeownership. About 18% ...
- Tax deduction plan may be more than N.J. can afford.(New Jersey property tax...
- Magazine article from: The Bond Buyer Raynolds, Katherine M. February 5, 1996 700+ words
A proposed property tax deduction plan in New Jersey backed by Gov. Christine Todd Whitman...higher tax bracket, and thus get more out of any income tax deduction. A property tax deduction was in place from 1985 to 1990, when it was folded into...
- SENATE PANEL OKS RESTORING PROPERTY TAX DEDUCTION
- Newspaper article from: The Record (Bergen County, NJ) MICHAEL MOORE, Trenton Bureau May 10, 1996 700+ words
...NJ) 05-10-1996 SENATE PANEL OKS RESTORING PROPERTY TAX DEDUCTION -- EXPANDS PROPOSAL AMID CRITICISM FROM WHITMAN...Governor Whitman said the state cannot afford a property tax deduction on state income-tax returns, a Senate committee...
- Cooperative unit owner denied AMT property tax deduction.(alternative minimum...
- Magazine article from: The Tax Adviser O'Driscoll, David February 1, 2006 700+ words
L and T are tenant-stockholders of a cooperative housing corporation. On their 2001 joint return, they deducted their proportionate share ($10,489) of the housing corporation's real estate taxes from their adjusted gross income. They also included this deduction in computing their alternative
- Is it necessary to save receipts for sales tax deduction?
- Newspaper article from: Dallas Morning News (Dallas, TX) February 14, 2005 700+ words
...The reinstated sales tax deduction presents some Texas...mortgage-interest and property-tax deductions to make...Texans, the sales tax deduction will put them over...complication: The sales tax deduction is scheduled to expire...
- RESTORE PROPERTY-TAX DEDUCTIBILITY
- Newspaper article from: The Record (Bergen County, NJ) March 24, 1996 700+ words
...Restoration of the income-tax deduction for property-tax payments would give her...favored restoration of the property-tax deduction, she didn't provide...doubling the annual $250 property-tax deduction for low- and moderate...
- Highlights Of GOP Plan For School Property Tax Relief
- Newspaper article from: New York Beacon, The David Bauder December 13, 1995 700+ words
...Republican plan for property tax relief and school budget...relief to people whose property tax exceeds a specific...to a current local property tax credit they receive. * Allow a school tax deduction on state income taxes...
- President signs measure extending sales tax deduction on federal returns.
- Newspaper article from: South Florida Sun-Sentinel (Fort Lauderdale, FL) December 21, 2006 700+ words
...taxes. The extension of the sales tax deduction was one of many provisions in a catchall...revitalizing our communities." The sales tax deduction extends a break Floridians have enjoyed...returns took advantage of the sales tax deduction, out of 8.2 million returns total...
- New Federal Income Tax Deduction for Mortgage Insurance Premiums Will Benefit...
- Press release article from: PR Newswire April 4, 2007 700+ words
...spring home buying season with a new tax deduction that can put extra money in their pockets...next year. The reason: a new federal tax deduction allows many qualified families to write...principle by extending the federal tax deduction for mortgage insurance." "Tax deductible...
