 SuperNet9Go Ninja,Go Ninja Go..Premium
join:2002-10-08
Harwood Heights, IL
kudos:4
 ·VOIPo
| Income Tax question My sister bought a house on 7/2012... Interest this year is about $2,300.00 on her mortgage for 2012 and then another statement from a different company for $400.00 interest on 4000 points and then something about $3,300 pmi..(i guess 1st company sold the mortgage)
Should she do standard deduction or do itemized..
she is Single
I am guessing itemized? |
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BobAccount deleted
join:2012-07-22
New Jersey Reviews:
 ·Optimum Online
| You do not provide enough information to answer the question. Did she pay state income taxes? Property taxes? Gifts to charity? Medical expenses in excess of 7.5% of her income? Unreimbursed employee expenses? Union Dues?
Since you have to ask the question in the first place, you should probably call 1-800-TAX-1040 and get the proper answer. |
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 CylonRedPremium,MVM
join:2000-07-06
Bloom County | reply to SuperNet9
She needs to talk to a tax professional. 4000 points would be a HUGE sum of money unless the house cost was a few dollars...
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Brian
"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain |
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| reply to SuperNet9
Spend $30 on some income tax software. Enter the numbers and then the software will tell you which method results in your sister paying the least amount of income tax. Easy.  |
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| reply to SuperNet9
computer setup Hello Friend,
You have to spend $30 on some income tax software. Enter the numbers and then the software will tell you which method results in your sister paying the least amount of income tax.
charlesdean |
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 tschmidtPremium,MVM
join:2000-11-12
Milford, NH
kudos:8
 ·G4 Communications
·Fairpoint Commun..
 ·Hollis Hosting
| reply to SuperNet9
Re: Income Tax question That is an easy question - plug in all the itemized deductions and if it exceeds the standard deduction itemize. With state income and mortgage more then likely it will make sense to itemize, don't overlook other deductible expenses if you decide to itemize.
As has been posted if you are using tax software plug the expenses in it will quickly tell you which way is better.
/tom |
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| reply to SuperNet9
I don't know what all of the items you mention mean in terms of interest paid, but it is fairly simple to figure out what she should do.
(I am not a tax professional, so this is just my ramblings as a layperson who does her income tax forms by hand).
Take a look at federal Schedule A and see what her total deductions will be:
Include Medical (prescriptions, doctors' fees not reimbursed by insurance, medical and dental insurance premium payments, dentists' bills not reimbursed by insurance, eyeglasses, etc. mileage to doctors' appointments if that's worth tracking.
Also there is a section for local taxes where she can put her property taxes ("real estate taxes"). Also local income tax payments go in there if my memory serves me correctly.
Also charitable deductions - check the instructions for charitable as they, like Medical, are limited by comparison to income although it does not say that on Sched. A itself.
Then compare to the standard deduction.
Update: I looked up pmi and it seems to be "private mortgage insurance"? I googled and there are some cases in which that is deductable on Sched A, so check that out. Also, she should make sure she gets that discontinued once she reaches enough equity.
I have to say I'm stunned that private mortgage insurance costs that much. |
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CylonRedPremium,MVM
join:2000-07-06
Bloom County | It should not be that much - when I had it, it was less than $100/month. Can't begin to imagine the price for that insurance has gone up that much...
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Brian
"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain |
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| reply to SuperNet9
Your sister would need to have more deductions to itemize, it looks like she is a little short of the standard deduction of $5,950. Real estate taxes she paid would be more than enough to itemize. |
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 drewAutomaticPremium
join:2002-07-10
Port Orchard, WA
kudos:6 | reply to CylonRed
On a $200k+ note, I'm paying $116/mo for PMI.
And pardon my language, but PMI is fucking bullshit. |
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| Why is PMI b*llsh*t? If you have enough to put down then you don't need PMI. It is a personal choice you make when purchasing a home.
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 Badger3kWe Don't Need No Stinkin BadgersPremium
join:2001-09-27
Franklin, OH | reply to drew
said by drew:On a $200k+ note, I'm paying $116/mo for PMI.
And pardon my language, but PMI is fucking bullshit.
After 5 years or when you get 78% LTV you should be able to request to have it removed. I think on loans after 2000 (or some date and year) the banks are supposed to automatically remove it on reaching the LTV. Hard to do now that home values are still shit.
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drewAutomaticPremium
join:2002-07-10
Port Orchard, WA
kudos:6 | 5 years relies upon valuation.
»www.mtgprofessor.com/a%20-%20pmi···(ii).htm
PMI is a racket for the banks. I purchased in 2007. PMI will be gone... in a long, long time.
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BobAccount deleted
join:2012-07-22
New Jersey | That's what you get for buying more than you can afford. |
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H_T_R_NPremium
join:2011-12-06
Valencia, PA
kudos:1 Reviews:
·voip.ms
·Armstrong Zoom ..
| said by Bob:That's what you get for buying more than you can afford.
I was going to say the same thing. PMI is so the banks\lending institution can cover the loss when the buyer realizes in a year or so that he can't afford the house he talked himself into. |
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BobAccount deleted
join:2012-07-22
New Jersey | Always put at least 20% down in cash. If you can't do that, you really can't afford to buy the property.
When I bought my house, loan-to-value ratio was 70%. Now it's 25%. |
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CylonRedPremium,MVM
join:2000-07-06
Bloom County | reply to H_T_R_N
said by H_T_R_N:said by Bob:That's what you get for buying more than you can afford.
I was going to say the same thing. PMI is so the banks\lending institution can cover the loss when the buyer realizes in a year or so that he can't afford the house he talked himself into. We did not have 20% but we could easily afford the house - had PMI for about 2.5 years so the above is not necessarily true.
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Brian
"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain |
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 hitachi369Embrace Your RightsPremium
join:2001-10-03
Grand Rapids, MI
kudos:4
 ·AT&T U-Verse
| reply to CylonRed
said by CylonRed:It should not be that much - when I had it, it was less than $100/month. Can't begin to imagine the price for that insurance has gone up that much...
I work for a bank, 100$ isn't a lot for PMI. I saw an account earlier this week they were paying 261$ in PMI each month.
PMI is a rip off, @ drew  as long as you dont have a FHA loan you can cancel before before 5 years or 78% LTV. My bank only requires LTV less than 80%, depending on how close you are to the target LTV you could also have your house appraised and maybe bump high enough. I'm sure your bank would be similar.
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drewAutomaticPremium
join:2002-07-10
Port Orchard, WA
kudos:6 | I bought at 250k. Valuation is under 170k. |
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SuperNet9Go Ninja,Go Ninja Go..Premium
join:2002-10-08
Harwood Heights, IL
kudos:4 | reply to SuperNet9
How can someone get a Valuation on the house?
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