> From: Ian Skinner [mailto:[EMAIL PROTECTED] > <quote> > although I've been told that tax-wise, it's in my best > interest to have a mortgage (as opposed to outright owning a home). > </quote> > > I have never understood that. Yes, you get to deduct your > interest from your taxes, but you paid that money to a bank > and/or mortgage company in the first place. So, you are only > getting money back that you paid to someone else, sounds like > a zero gain to me! To me, not having any house payments > means more money in your pocket, even if you pay more of your > income to Uncle Sam. > > But maybe somebody more fiscially sophisticated then I, can > explain how this works in my favor.
It is in your favor because deducting the interest reduces your adjusted gross income (AGI) which reduces taxable income... Which ultimately leads to you paying less on the money you earned. When you have no mortgage, your AGI does not go down by the interest payments anymore thereby you have a higher AGI and thus higher taxes. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143763 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
