Patrick.net

Follow
Befriend
2 threads
7 comments
Oakland, CA
Followed by 0
Following 0
Ignored by 0
Ignoring 0
Ignore veenstr
Registered May 21, 2009

veenstr's most recent comments:

• On 26 Feb 2010 in 18885 Kosich Dr, Saratoga, CA 95070, veenstr said:

  I did not realize the phase out rule. But this does not seem to apply for 2010? Did I read this correctly?
  http://www.smartmoney.com/personal-finance/taxes/a-primer-on-homeowner-tax-breaks-14327/

  If it does it appears one should add $10 per year for every $1000 they make above $166,800. To do the quick math you costs increase about $1 per month for every $1000 of $166,800 you make. It looks like O'bama would like to bring this back at 3%. So that would be $30 per year per $1000 over.

• On 26 Feb 2010 in 18885 Kosich Dr, Saratoga, CA 95070, veenstr said:

  Here are the numbers as I see. Please correct any mistakes.

  I used bankrate.com to calculate amortization. And we pay a monthly mortgage of $6447.
  http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

  - Interest paid first year $65,964.33. Monthly $5497. Interest deduction saved. (65,964.33 * .428) = $28232 yearly or $2352 monthly.
  - Principle paid first year $11,400.80. Monthly forced savings. $950

  Now we have monthly of ...
  $6447 + $1300 monthly property tax - $556 property tax write off - $2352 interest paid write off + $607 interest earned on down payment - $950 forced savings = $4496 actual cost.

  A bit cheaper to buy. Not including maintenance.

  Updated with SF Ace correction.

• On 26 Feb 2010 in 18885 Kosich Dr, Saratoga, CA 95070, veenstr said:

  There are aspects of the costs not being taken into consideration here. Both positive and negative.

  The family who is buying a $1.27 million dollar home should be in at least the 33% tax bracket for federal. Over the first year based on proper amortization tables we pay $65,964.33 in interest. Times 42.8 (taxes we don't pay) = saving of $2742 per month.
  - No one is calculating the money/interest earned on the hefty down payment of $255,000. And minus the tax on those earning. If we assume they can safely make simple interest of 5% then this is $7293 after tax per year or $607 per month. This assumes no capital gains which would save us more money.

  - We assume no payment of principle which reduces interest over time. So this benefit overtime is not as strong.
  - We get a standard deduction in 2010 of $11,400 depending on your income and ability to write off the state tax as an itemized deduction on the feds this may be taken into account. In this case there should be no action taken here as the buyer of this home should be making over $150K a year. And the state tax on $150K a year is close to the standard deduction. So they would itemize either way.

  See below for actual numbers. I did not realize I could edit my own post...so I reposted. Now I edited.