In article <114a2f89-5af4-4958-922e-408e9315d0ad[at]l64g2000hse.googlegroups.com> ,
Sallymae <opmmp3[at]yahoo.com> wrote:
- quote -

That's up to you.

The W4 instructions have something about "How much will your itemized
deductions be? Subtract your allowance if not itemizing, divide the
difference by a magic number ($3000?) and add that many exemptions to
the W4 number". Then your employer will withhold less from each check.

Whether or not you do that, when you file your income tax return, the
amount of tax will be lowered due to the increase in deductions.

Seth

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"Sallymae" <opmmp3[at]yahoo.com> wrote in message
news:114a2f89-5af4-4958-922e-408e9315d0ad[at]l64g2000hse.googlegroups.com...
- quote -


Purchasing a house as a personal residence should lower your tax liability.
There are many factors in play here.
What I do for clients is to prepare a tax projection to determine the tax
liability with the new house purchase.
Then, I tell the client how much to adjust their withholding from their
paychecks after reviewing the ytd paystubs.

Nothing automatically happens to your paycheck.
You have to tell your employer how much to deduct.
This is done via form W4.
Depending on the state you reside in, you may want to adjust the state
withholding too.



___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Sallymae" <opmmp3[at]yahoo.com> wrote in message
news:114a2f89-5af4-4958-922e-408e9315d0ad[at]l64g2000hse.googlegroups.com...
- quote -

Reducing the amount withheld is accomlished by increasing the number of
allowances reported on form W-4 given to your employer. You will have to
locate software that calculates the magic (allowance) number for you or do
some number crunching. BTW you should also factor in the actual interest
paid on your home mortgage also.






- quote -

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Hi,

We finally put an offer for a house. With regards to tax savings, when
do you see this savings? Is it seen on your paycheck? Or is it seen on
each annual tax refund?

I've ran my numbers using various tax calculators, but they don't
quite tell me the "how" part. I tried checking out the form for tax
withholding at work, and I don't see any instructions for factoring in
real estate insurance and private mortgage insurance.

Just for reference, these are my numbers:

real estate taxes - $3000 per year
private mortgage insurance (pmi) - $124 per month

*Note: Regarding PMI, I read that if a loan is made between 2007-2010,
then any PMI payments from that period can be tax deductible. Is it
true?

Thanks!

========================================= MODERATOR'S COMMENT:
- what's the loan amount and interest rate?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >