Don’t pay the bank $10,000 to avoid paying the govt $2,500!

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Tax time.
Here’s a “SUPER DOH!” moment for you:

There’s a MYTH that mortgage interest is a tax write off.

Ready?

It’s NOT!!

MYTH MYTH MYTH!!

Here’s how it REALLY WORKS:

Example:
You paid $10,000 in mortgage interest last year. The Tax form from the bank says so.

You DON’T get all that $10,000 back. The bank keeps it.

You only get back your tax bracket % x the mortgage interest.

Example:
$(Mort interest)*(your tax bracket %)

$10,000*25%=$2,500

YOU GET:$2,500 back

Congratulations.

You have paid the bank $10,000 to the bank to keep $2,5000 from the government.

What if you had NO MORTGAGE?

You could KEEP the entire $10,000!

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