Quote:
Originally Posted by jIM_Ohio
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.