Assumptions:
*7.5 / 30 yr fixed mortgage, 500 yearly insurance, 6% Real estate appreciation and 4% inflation.
* 27.5 yr straight line depreciation, deduction may be limited with high gross
income. Depreciation is based on the value of the home without the
land. In this calculation we are allocating 10% of the purchase price to the
land and the remainder to the residence.
** 2001 Federal Filing Status Single (most conservative tax rate)
Keep in mind that your tax deduction may also be limited with an adjusted
gross income over $100,000. See your tax advisor for details. |
