Tuesday, January 04, 2005
Home Buying Jitters
Home Buying Jitters. I spoke with a client today who is a first-time buyer. He's rather concerned about the impact of his new house payment will have on his net income. Like most people, he was viewing his take home pay as it is today--without having the benefit of piling on tax deductions--and trying to fathom how he'd be able to make the payments. I reminded him that he'd want to change the number of deductions the Payroll department uses to calculate his net pay to compensate for the higher monthly payment.
Refer to IRS publication 936, Home Mortgage Interest Deduction for the official statement. Since it is "tax season," it's a good time to look into to what deductions you are entitled. Interest payments on mortgages are one of the best deductions the average American can make. My reminder calmed his jitters.
