property tax refund?

[thom1301]

Have any of you Minnesota residents ever got a property tax refund? This is my first time doing my taxes as a MN resident, so I'm a little skeptical. Will I actually be getting 500-some dollars back from what I paid in on rent? I guess it would be pretty sweet, but I'm not holding my breath (I wonder how long it will take after I mail the stuff in?).
travis

[Sweet35th]

You do get a renters credit in the form of a refund. But it is nothing compaired to that of being able to deduct interest on your home.

[FASTANG]

Originally posted by Sweet35th
You do get a renters credit in the form of a refund. But it is nothing compaired to that of being able to deduct interest on your home.

[Video_Master]

but deducting interest on your home is only really good if you are in the lower tax brackets. I would rather have a lower interest rate and pay in during the year on income tax and still have more money. Only reason I know this is my Dad has his own CPA firm.

[Sweet35th]

but deducting interest on your home is only really good if you are in the lower tax brackets. I would rather have a lower interest rate and pay in during the year on income tax and still have more money. Only reason I know this is my Dad has his own CPA firm.

On a typical $200,000 home. The first few years interest is over $12,000 a year at a low 5.75% rate (30 year mortgage). If you dont think $12,000 is a big deduction on even a higher income your nuts. And lets look at this realisticaly.

A single individual in order to qualify for a $200,000 home is going to need to make roughly $45,000+. Thats not exactly a low tax braket for a single adult. And individuals making in the $100,000 are generaly not living in $200,000 homes, so thier interest paid is even higher.

It has been proven time after time that owning a home even with interest is a great benifit, because the value of homes raise more than the interest paid on them a year.

A $200,000 home bought in 2002, is worth more than $212,000. So not only are you using your interest as a deduction, but your are also gaining equity in the house greather than that paid into interest. And that increase in value is tax free money.

[KrisR]

Originally posted by Sweet35th
And that increase in value is tax free money.

...only if you don't sell it within 2 years of purchase, correct? Otherwise isn't there a Capital Gains Tax or something?

But I agree with you Casey. Being a new homeowner (new owner, not new home...) I'm learning all this cool stuff about tax benefits etc.

[MetallicPony]

Originally posted by Video_Master
but deducting interest on your home is only really good if you are in the lower tax brackets. I would rather have a lower interest rate and pay in during the year on income tax and still have more money. Only reason I know this is my Dad has his own CPA firm.

Actually deductions help higher taxpayers more. We all get a standard deduction automatically, unless your itemized deductions are greater than the standard deduction, you automatically revert to the standard deduction. So in reality, deducting interest(along with other allowed itemized deductions) doesn't do a low income person any good unless it exceeds the standard deduction for thier situation.

and you thought all i did down in FL was play hockey

[zeus]

Originally posted by MetallicPony
Actually deductions help higher taxpayers more. We all get a standard deduction automatically, unless your itemized deductions are greater than the standard deduction, you automatically revert to the standard deduction. So in reality, deducting interest(along with other allowed itemized deductions) doesn't do a low income person any good unless it exceeds the standard deduction for thier situation.

Touche, Jimmy. The key that you're missing is 'low income' folks tend to have higher-rate mortgages. That means ytd interest on the order of $10,000+, guaranteed to be more than the standard deduction.

Besides, we 'higher taxpayers' need all the help we can get.. progressive taxation is a load of shit - AMERICA SAYS, "DON'T SUCCEED! WE WILL PENALIZE YOU! OH, OH YOU'RE A BUSINESS OWNER? BEND OVER!!!"

[MetallicPony]

Originally posted by zeus
Touche, Jimmy. The key that you're missing is 'low income' folks tend to have higher-rate mortgages. That means ytd interest on the order of $10,000+, guaranteed to be more than the standard deduction.

They may have higher motgage "rates", they don't necessarily have higher mortgage balances. If lower income owners are buying houses matched to thier income *or* are into thier mortgage term far enough that thier interest is not more than thier standard deduction, my scenario is correct. Certainly we can give exceptions to the rule, but all I was trying to do was add to Caseys comments.

[Zinc]

HTF do YOu know that shiz jimmah?

Ryan

[zeus]

Originally posted by MetallicPony
If lower income owners are buying houses matched to thier income

Shows what you know, no low income people buy anything within the bounds of their income nowadays.

[Zinc]

*cough DAN_O * cough. hehe. j/k

Ryan

[MetallicPony]

Originally posted by zeus
Shows what you know, no low income people buy anything within the bounds of their income nowadays.

Although that is probly true in many cases, I would argue that they are no more prone to spend outside thier bounds than higher income people are.

Like I said, there are exceptions. In outstate Mn where housing prices are much lower (compared to the metro) lower mortgages are much more common.

[zeus]

Originally posted by MetallicPony
Although that is probly true in many cases, I would argue that they are no more prone to spend outside thier bounds than higher income people are.

Anyone can fall victim to a lack of discipline and the stupidity of consumer credit.

Originally posted by MetallicPony Like I said, there are exceptions. In outstate Mn where housing prices are much lower (compared to the metro) lower mortgages are much more common.

I live 'outstate' and my mortgage is pretty good size

Regardless, I am certain that most folks' mortgage interest / prop tax deductions are more sizeable than a standard deduction; the point is moot. Now that I'm curious I'll have to ask my accountant.

[VELOCITY]

Zues you are right, the stardard deduction is only like $4500 or something like that. Way less than what interest would be on a house, even a cheaper house. Also if you itemize there are other things that you can deduct besides the intrest on your morgauge. And yet I still rent, someday I have dreams of owning my own home but I refuse to sell the mustang to do it.