Property Tax and Mortgage Interest – Do we get a portion of the money back comes tax return ?

nismosr: Property Tax and Mortgage Interest – Do we get a portion of the money back comes tax return ?
I just bought a condo and and I’m paying property tax close to 4K a year, and my interest is on the high side. Any info ?
I’m also single if that counts. And before I go to my tax accountant does the bank send out some paper statements on my mortgage interest to include in filing my return ?

Answers and Views:

Answer by v b
The married joint standard deduction is $ 10,700 for 2007. If your itemize deductions (including property tax and mortgage interest) are more than that you may see a reduction in your tax bill.

Answer by googie
Property taxes and interest payments are legitimate income tax deductions if you are itemizing on your return . Whether you reduce your tax payment or get additional credit is dependent upon your declared earnings and the income taxes which were withheld, plus dependents.

Answer by CH
Once you buy a home you should itemize your taxes. ALL of the mortgage interest and property taxes you pay are deductable. Your interest and other deductions usually work out to be more than the standard deduction.
If you do your taxes yourself, try Turbo Tax Deluxe, I used it when I bought my house- and continue to use it. It answers all your questions about deductions, helps you find deductions, etc. I love it.

Also- you just bought your condo?? Most of your closing costs and points you paid are also deductable.

Answer by [email protected]
Generally owning a home (condo, townhome, house) with mortgage interest and real estate taxes, is enough to push you over the standard deduction. What this means is that you will be filing a Schedule A. There’s not a direct dollar for dollar relationship between your deductions and your refund, but it does have a good impact. You should see what other deductions you may now be able to benefit from.
Sometimes the first year of ownership, if it’s half a year or less, doesn’t work out, but the next year does. Frequently you aren’t paying the taxes the first year, the seller gave you money to pay the taxes.

Answer by MG@cybtaxes
If you itemize deductions this year (see if your itemized deductions on 1040, Schedule A exceed your standard deduction, which is $ 10,700 for married filing joint, $ 7850 for head of household, $ 5350 for single or married filing separate in ’07), you generally may deduction qualified mortgage interest and property taxes on up to 2 residences. For home purchases in 2007 only, premiums paid for mortgage insurance (common if you paid less than 20% down on the home) on a principal or second residence may also be deducted as mortgage interest.
Good luck!