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When someone buys a house, do the mortgage payments help to reduce her reported income for tax brackets? Any other tax benefit at all?
No they do not. The only tax benefit is the ability to deduct mortgage interest and property taxes if you itemize.
- StephenWeinsteinLv 71 month ago
The interest payments on the mortgage due. Paying off the amount borrowed does not.
- ?Lv 51 month ago
No.. you're not going to get no big tax brake just cause you purchase a house. you may get a small tax break but nothing really big. you not going to get put into a lower tax braket cause u have a home u paying a mortgage to
- Wayne ZLv 71 month ago
Prior to 2018, yes. The mortgage interest paid plus other itemized deductions often exceed the Standard Deduction and, as such, lowered taxpayers taxable income.
Now, not so much. Recent tax changes eliminated the Personal Exemptions and, more or less, doubled the Standard Deduction. This, pretty much, eliminated the tax benefit to buying a house for about 90% of taxpayers.
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No, your income is taxed the same, you're buying yourself something, in this case a house.