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Old 06-05-2008, 01:00 PM
noppenbd noppenbd is offline
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Quote:
Originally Posted by jIM_Ohio View Post
So if my AGI for 2007 was around 90k, then I need 2% of 90k ($1800) or more to get deductions?

Electric is $3600/year (300/mo), 1/8 of which is $450.
Mortgage interest is around 20k per year, 1/8 of which is $2500.
Property taxes are $5200/year, 1/8 which is $650.

Appears I get $3600- does this reduce my taxable income or do something else?
Don't forget home insurance. HO deductions fall under line 21 of schedule A as part of Misc deductions: http://www.irs.gov/pub/irs-pdf/f1040sab.pdf

Misc deductions also includes tax preparation software or fees.

So the $3600 or so would be an additional itemized deduction, reducing taxable income.
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