Home Buying in 10305>Question Details

Trudy Lia, Home Buyer in Brooklyn, NY

When buying a house and you need to get mortg financing, doesn't the mortg tax (esp. in NYC) negate any savings you'd get from mortg int

Asked by Trudy Lia, Brooklyn, NY Thu Sep 16, 2010

tax deduction

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Thanks everyone for your replies -- unfortunately, since this is new construction, I'm also stuck with the transfer tax, and since it has no tax abatement, I'm sure I'll see little to next to nothing after you deduct the mortgage tax, transfer tax, and property tax for the first 2-3 years. It feels like a game of government monte here, where one hand gives you this (which is your own money back) and another takes it. BTW, even renting I could write off charitable donations I made.
0 votes Thank Flag Link Mon Sep 20, 2010
Not really since you are getting the tax deduction for mortgage interest and real estate tax every year. After you speak with you account, you will see that once you own a home you also do not get taxed on charitable donations, mileage for doing volunteer work & etc since they are all deductible from your gross income.
When you live in NYC not only does Uncle Sam give you a tax break but NYS & NYC.
0 votes Thank Flag Link Fri Sep 17, 2010
For the most accurate answer as it applies to your specific situation, do consult with your tax professional.
0 votes Thank Flag Link Fri Sep 17, 2010
Trudy,

Matters of taxation are rarely that simple. While your mortgage tax is part of the transaction (a "one time" expense, if you will), your mortgage interest deduction is often claimed each year you file your taxes going forward. The details of your question are best addressed by a CPA or tax attorney and if you need a referral I would be happy to provide one.

Thank you,

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Thu Sep 16, 2010
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