REALTOR® Magazine Online: What Tax Deductions Mean to the Homeowner

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SALES MEETING TOOL KIT:
REAL ESTATE TAXES 101

Real Estate Taxes 101, Introduction

Component 1:
Facilitator Talking Points

Component 2:
Real Estate Taxes 101 Meeting Agenda

Component 3:
Activity 1, Common Real Estate Tax Mistakes Quiz

Component 4:
Answer Sheet for Activity 1, Real Estate Tax Mistakes

Component 5:
Handout 1, What Can You Deduct When You Own a Home?

Component 6:
Activity 2, What Tax Deductions Mean to the Homeowner

Component 7:
Handout 2, What’s Your Real Gain?

Component 8:
Handout 3, A Basis Worksheet

Component 9:
Handout 4, Improvement vs. Repair

Component 10:
Activity 3, Name That Tax, or How Fast Can You Calculate

Component 11:
Answers for Activity 3, Name That Tax, or How Fast Can You Calculate

Component 12:
Other Resources

Component 6
Activity 2: What Tax Deductions Mean to the Homeowner

You can help buyers understand the tax benefits of homeownership by demonstrating how annual tax deductions for mortgage interest and property taxes will reduce their income tax liability.

Assume:
Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)	$9,877

Taxes (at 1.5 percent on $180,000 assessed value)	2,700
	__________
Total deduction	$12,577

Amount you have lowered your federal income tax (at 27 percent tax rate)	$3,395.79

Assume:
Mortgage interest paid (a loan of $125,000 at 6.75 percent, using year-five interest)	$6,482

Taxes (at 2 percent on a $150,000 assessed value)	3,000

Total deduction	__________

Amount you have lowered your federal tax (at 27 percent tax rate)	__________

See Facilitator Notes , under Activity 2, for answer.

Component 7: What's Your Real Gain? >

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