Tax Savings Charts

The Tax Benefits of Homeownership - from the National Association of Home Builders.

 

Table 1: Typical Federal Income Tax Savings In The First Year of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$4,781

$4,781

$5,520

 

$250,000

 

 

 

 

$2,317

$3,861

$3,861

$4,600

 

$200,000

 

 

 

$1,542

$1,765

$2,941

$2,941

$3,680

 

$180,000

 

 

$1,322

$1,322

$1,544

$2,573

$2,573

$3,312

 

$160,000

 

 

$1,101

$1,101

$1,323

$2,205

$2,205

$2,944

 

$140,000

 

$919

$880

$880

$1,102

$1,837

$1,837

$2,576

 

$120,000

$698

$698

$659

$659

$882

$1,469

$1,469

$2,208

 

$100,000

$477

$477

$438

$438

$661

$1,101

$1,101

$1,840

 

$80,000

$256

$256

$218

$218

$440

$733

$733

$1,472

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 2: Typical Federal Income Tax Savings Through The First Five Years of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$23,363

$23,363

$27,057

 

$250,000

 

 

 

 

$11,312

$18,854

$18,854

$22,548

 

$200,000

 

 

 

$7,495

$8,607

$14,344

$14,344

$18,038

 

$180,000

 

 

$6,413

$6,413

$7,524

$12,541

$12,541

$16,234

 

$160,000

 

 

$5,331

$5,331

$6,442

$10,737

$10,737

$14,431

 

$140,000

 

$4,442

$4,248

$4,248

$5,360

$8,933

$8,933

$12,627

 

$120,000

$3,359

$3,359

$3,166

$3,166

$4,277

$7,129

$7,129

$10,823

 

$100,000

$2,277

$2,277

$2,084

$2,084

$3,195

$5,325

$5,325

$9,019

 

$80,000

$1,195

$1,195

$1,002

$1,002

$2,113

$3,521

$3,521

$7,215

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 3: Typical Federal Income Tax Savings Through The First Twelve Years of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$53,153

$53,153

$62,018

 

$250,000

 

 

 

 

$25,690

$42,817

$42,817

$51,682

 

$200,000

 

 

 

$16,821

$19,488

$32,480

$32,480

$41,346

 

$180,000

 

 

$14,340

$14,340

$17,007

$28,346

$28,346

$37,211

 

$160,000

 

 

$11,881

$11,860

$14,527

$24,211

$24,211

$33,077

 

$140,000

 

$9,843

$9,397

$9,379

$12,046

$20,077

$20,077

$28,942

 

$120,000

$7,362

$7,362

$6,914

$6,898

$9,565

$15,942

$15,942

$24,807

 

$100,000

$4,881

$4,881

$4,430

$4,417

$7,085

$11,808

$11,808

$20,673

 

$80,000

$2,401

$2,401

$1,947

$1,937

$4,604

$7,673

$7673

$16,538

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

15.00%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 4: Capital Gains Tax Savings upon Sale

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$32,474

$32,474

$32,474

 

$250,000

 

 

 

 

$27,062

$27,062

$27,062

$27,062

 

$200,000

 

 

 

$21,650

$21,650

$21,650

$21,650

$21,650

 

$180,000

 

 

$19,485

$19,485

$19,485

$19,485

$19,485

$19,485

 

$160,000

 

 

$17,320

$17,320

$17,320

$17,320

$17,320

$17,320

 

$140,000

 

$15,155

$15,155

$15,155

$15,155

$15,155

$15,155

$15,155

 

$120,000

$12,990

$12,990

$12,990

$12,990

$12,990

$12,990

$12,990

$12,990

 

$100,000

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

 

$80,000

$8,660

$8,660

$8,660

$8,660

$8,660

$8,660

$8,660

$8,660

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

0.00%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Capital gains tax rate

15%

15%

15%

15%

15%

15%

15%

15%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 5: Typical Federal Income Tax Savings Through Average Duration of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$85,627

$85,627

$94,493

 

$250,000

 

 

 

 

$52,752

$69,879

$69,879

$78,744

 

$200,000

 

 

 

$38,471

$41,138

$54,130

$54,130

$62,995

 

$180,000

 

 

$33,825

$33,825

$36,492

$47,830

$47,830

$56,696

 

$160,000

 

 

$29,200

$29,179

$31,846

$41,531

$41,531

$50,396

 

$140,000

 

$24,998

$24,552

$24,533

$27,201

$35,231

$35,231

$44,097

 

$120,000

$20,352

$20,352

$19,904

$19,888

$22,555

$28,932

$28,932

$37,797

 

$100,000

$15,706

$15,706

$15,255

$15,242

$17,909

$22,632

$22,632

$31,498

 

$80,000

$11,060

$11,060

$10,607

$10,596

$13,264

$16,333

$16,333

$25,198

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

0.00%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

Assumes 12 year ownership period, 4.23% annual price appreciation (20 year Case Shiller average), and a 15% capital gains tax rate

 

The Tax Benefits of Homeownership - from the National Association of Home Builders.

 

Table 1: Typical Federal Income Tax Savings In The First Year of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$4,781

$4,781

$5,520

 

$250,000

 

 

 

 

$2,317

$3,861

$3,861

$4,600

 

$200,000

 

 

 

$1,542

$1,765

$2,941

$2,941

$3,680

 

$180,000

 

 

$1,322

$1,322

$1,544

$2,573

$2,573

$3,312

 

$160,000

 

 

$1,101

$1,101

$1,323

$2,205

$2,205

$2,944

 

$140,000

 

$919

$880

$880

$1,102

$1,837

$1,837

$2,576

 

$120,000

$698

$698

$659

$659

$882

$1,469

$1,469

$2,208

 

$100,000

$477

$477

$438

$438

$661

$1,101

$1,101

$1,840

 

$80,000

$256

$256

$218

$218

$440

$733

$733

$1,472

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 2: Typical Federal Income Tax Savings Through The First Five Years of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$23,363

$23,363

$27,057

 

$250,000

 

 

 

 

$11,312

$18,854

$18,854

$22,548

 

$200,000

 

 

 

$7,495

$8,607

$14,344

$14,344

$18,038

 

$180,000

 

 

$6,413

$6,413

$7,524

$12,541

$12,541

$16,234

 

$160,000

 

 

$5,331

$5,331

$6,442

$10,737

$10,737

$14,431

 

$140,000

 

$4,442

$4,248

$4,248

$5,360

$8,933

$8,933

$12,627

 

$120,000

$3,359

$3,359

$3,166

$3,166

$4,277

$7,129

$7,129

$10,823

 

$100,000

$2,277

$2,277

$2,084

$2,084

$3,195

$5,325

$5,325

$9,019

 

$80,000

$1,195

$1,195

$1,002

$1,002

$2,113

$3,521

$3,521

$7,215

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 3: Typical Federal Income Tax Savings Through The First Twelve Years of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$53,153

$53,153

$62,018

 

$250,000

 

 

 

 

$25,690

$42,817

$42,817

$51,682

 

$200,000

 

 

 

$16,821

$19,488

$32,480

$32,480

$41,346

 

$180,000

 

 

$14,340

$14,340

$17,007

$28,346

$28,346

$37,211

 

$160,000

 

 

$11,881

$11,860

$14,527

$24,211

$24,211

$33,077

 

$140,000

 

$9,843

$9,397

$9,379

$12,046

$20,077

$20,077

$28,942

 

$120,000

$7,362

$7,362

$6,914

$6,898

$9,565

$15,942

$15,942

$24,807

 

$100,000

$4,881

$4,881

$4,430

$4,417

$7,085

$11,808

$11,808

$20,673

 

$80,000

$2,401

$2,401

$1,947

$1,937

$4,604

$7,673

$7673

$16,538

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

15.00%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 4: Capital Gains Tax Savings upon Sale

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$32,474

$32,474

$32,474

 

$250,000

 

 

 

 

$27,062

$27,062

$27,062

$27,062

 

$200,000

 

 

 

$21,650

$21,650

$21,650

$21,650

$21,650

 

$180,000

 

 

$19,485

$19,485

$19,485

$19,485

$19,485

$19,485

 

$160,000

 

 

$17,320

$17,320

$17,320

$17,320

$17,320

$17,320

 

$140,000

 

$15,155

$15,155

$15,155

$15,155

$15,155

$15,155

$15,155

 

$120,000

$12,990

$12,990

$12,990

$12,990

$12,990

$12,990

$12,990

$12,990

 

$100,000

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

 

$80,000

$8,660

$8,660

$8,660

$8,660

$8,660

$8,660

$8,660

$8,660

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

0.00%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Capital gains tax rate

15%

15%

15%

15%

15%

15%

15%

15%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

 

Table 5: Typical Federal Income Tax Savings Through Average Duration of Homeownership

Mortgage Amount

 

 

 

 

 

 

 

 

 

$300,000

 

 

 

 

 

$85,627

$85,627

$94,493

 

$250,000

 

 

 

 

$52,752

$69,879

$69,879

$78,744

 

$200,000

 

 

 

$38,471

$41,138

$54,130

$54,130

$62,995

 

$180,000

 

 

$33,825

$33,825

$36,492

$47,830

$47,830

$56,696

 

$160,000

 

 

$29,200

$29,179

$31,846

$41,531

$41,531

$50,396

 

$140,000

 

$24,998

$24,552

$24,533

$27,201

$35,231

$35,231

$44,097

 

$120,000

$20,352

$20,352

$19,904

$19,888

$22,555

$28,932

$28,932

$37,797

 

$100,000

$15,706

$15,706

$15,255

$15,242

$17,909

$22,632

$22,632

$31,498

 

$80,000

$11,060

$11,060

$10,607

$10,596

$13,264

$16,333

$16,333

$25,198

 

Borrower Income

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$150,000

 

Average Taxable Income*

$15,175

$25,175

$35,433

$45,433

$53,951

$63,951

$73,951

$119,743

 

 

 

 

 

 

 

 

 

 

 

Source: NAHB Estimates using IRS SOI Data

 

 

 

 

 

 

 

 

Interest rate

0.00%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

5.86%

 

Marginal tax rate

15%

15%

15%

15%

15%

25%

25%

25%

 

Filing Status: Married Couples filing Jointly

Tax Rates: In effect during calendar year 2009

Interest Rate: FHLMC Primary Market Survey, 4th Quarter 2008 Average

* Borrower income minus average personal exemptions and itemized deductions. Data from IRS Statistics of Income.

Assumes 12 year ownership period, 4.23% annual price appreciation (20 year Case Shiller average), and a 15% capital gains tax rate

 

 

Copyright © 2017 Capstone Mortgage Company, Inc.

  NMLS Company ID #1445; MA Broker License #MB1445


Copyright © 2017 Capstone Mortgage Company, Inc.

  NMLS Company ID #1445; MA Broker License #MB1445