I’m buying a house for 370,000 and paying cash for it, how will that affect me tax wise?

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I was told that I’m going to pay alot of taxes at year end because I’m not paying any mortgage, is that true? Once I pay cash for it, should I perhaps take out an equity loan to help offset the taxes?

3 Comments
  1. Reply
    Tim
    May 4, 2011 at 12:13 am

    Figure your tax rate at about 30%. If you paid $ 10000 in interest, you would save $ 3000 in taxes. But you spent $ 7000 in interest.

    If you can afford it, don;t take our the loan. If you need moneylater, get a loan.

  2. Reply
    mmoyer2655
    May 4, 2011 at 1:10 am

    I think its great your paying cash for your house. I am not an accountant by any means, but what I assume you were told you would pay a lot in taxes because mortgage interest is a write off. The problem is that in order to save $ 3000 in taxes you have to pay $ 10,000 in interest.

    Buy the house with cash and start donating to your favorite charity for the same write off.

  3. Reply
    Luke 6:37
    May 4, 2011 at 1:22 am

    Invest the money and take a mortgage and you are better off, in my opinion.

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