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Diane Said:

can itemized deductions be less than federal adjusted gross?

We Answered:

Some states allow for additional deductions, so, yes, your state itemizations can be more than your Federal itemized deductions.

Doris Said:

Can someone pls explain how my house mortgage payments benefit me in terms of tax credit?

We Answered:

There is no guarantee that it will "benefit" you. However, mortgage loan interest and property taxes are deductible on your income tax return if you itemize your deductions. For most people in that situation, itemizing deductions results in less tax liability than taking the standard deduction.

Your monthly mortgage payment amount is not relevant. The amount of loan interest and property tax paid is what matters.

Ruben Said:

Can you help me figure out this percentage?

We Answered:

(.80)(6) + (.20)(7)=4.8%+ 1.4%= 6.2% is the actual interest rate

Adam Said:

Do mortgage for cooperative apartments include hazard insurance and property tax?

We Answered:

It's possible to have hazard insurance in there, but your taxes shouldn't be, normally that's in your maintenance fee.

Ernest Said:

What are the calculations to show the tax benefit of mortage interest deductions for a rental-property buyer?

We Answered:

The mortgage interest and property tax reduces your taxable income. The portion on the Schedule A might help if your itemized deductions are greater than your standard deduction. Apportion the real estate taxes the same way. The portion on Schedule E will offset the rental income and therefore reduce your taxable income.

The mortgage insurance isn't deductible so the portion attributable to your personal residence doesn't go on Schedule A. The portion attributable to the rental units should be deductible on Schedule E.