May 18, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Tax Relief on the Horizon for Homeowners as Mortgage Rates Soar in 2024

Mortgage Interest Deduction Offers Potential Savings Amidst Rising Rates

Amidst the economic rebound from the pandemic, home mortgage rates have surged, but a glimmer of relief awaits homeowners grappling with steep interest payments, according to Rent.com. The key lies in the strategic filing of tax returns, with the mortgage interest deduction paving the way for potential savings.

For those opting to itemize tax returns instead of taking the standard deduction, the mortgage interest deduction allows filers to deduct the entirety of their home interest payments, coupled with other eligible write-offs. Tax experts anticipate this option to be more appealing to a broader spectrum of filers this season.

While the standard deduction for the 2023 tax year is $13,850 for single filers and $27,700 for married taxpayers filing jointly, many homeowners might find the mortgage interest deduction to be a more lucrative option. A single filer paying a 4% interest rate on a $500,000 home loan, resulting in annual interest payments of $20,000, could realize substantial savings by opting for itemization.

Despite a decline in mortgage rates from the post-pandemic peak of 7.8%, the current 30-year mortgage rate remains above 6%. It’s important to note that principal payments, down payments, closing costs, appraisal fees, and insurance cannot be deducted from taxes. Additionally, mortgages on rental properties are ineligible for the deduction unless they serve as the filer’s primary residence. The deduction only applies to the portion of the home used for living, preventing double-dipping for those claiming home office tax write-offs.

Related Posts

Mayor Bass Orders Increased Police Presence on LA Metro After Surge in Violence

May 17, 2024

May 17, 2024

A Shocking Murder Was Committed on a Metro Bus After Announcement Mayor Karen Bass has directed an increase in law...

Inaugural Design Miami.LA Fair Opens in Holmby Hills

May 17, 2024

May 17, 2024

Exclusive Access and Dynamic Talks From May 16-20 The inaugural edition of Design Miami.LA opened yesterday, running until May 20,...

(Video) Design Miami LA Is Now Open in Holmby Hills

May 17, 2024

May 17, 2024

Sainte Marguerite en Provence Is the exclusive rosé sponsor. Welcome to the Greenhouse. @culvercitywlanews Design Miami LA Is Now Open...

Shock-A-Go-Go Film Festival Returns to Lumiere Cinema in Beverly Hills

May 17, 2024

May 17, 2024

A Weekend of Horror, and Cult Classics With Exclusive Q&A Sessions The Shock-A-Go-Go Film Festival is set to return to...

Devastating Fire Closes Historic Westwood Restaurant, Causing Serious Damage

May 16, 2024

May 16, 2024

Roozbeh Farahanipour Launches GoFundMe to Restore Cultural Tribute The Persian Gulf Restaurant and Museum in Westwood has sustained serious damage...

Culver City Police Seek Help in Identifying Elderly Woman Found Near Hospital

May 16, 2024

May 16, 2024

Urgent Assistance Needed to Locate Family of Disoriented Woman Culver City Police are urgently seeking the public’s assistance in identifying...

Beverly Hills Art Show Returns for Spring Weekend Extravaganza

May 16, 2024

May 16, 2024

Join the Celebration of Art in Beverly Gardens Park Art aficionados and families are invited to join the City of...

UAW 4811 Votes Overwhelmingly to Authorize Strike Against University of California System

May 16, 2024

May 16, 2024

Union Responds to Alleged Unfair Labor Practices with Strike Authorization Vote United Auto Workers 4811, the International Union, United Automobile,...

Metro Offers Free Rides to Billie Eilish’s Hit Me Hard and Soft Listening Party

May 15, 2024

May 15, 2024

Fans Provided Convenient Transportation Options to Kia Forum Venue With excitement building for Billie Eilish’s much-anticipated Hit Me Hard and...

(Video) Hang-Ten Therapeutics Uses Sand, Ocean and Surfboards as a Source of Empowerment

May 15, 2024

May 15, 2024

More Information at hang-tentherapuetics.com @culvercitywlanews Surf therapy is a source of empowerment #therapy #surfing #losangeles #fyp #santamonica ♬ original sound...

FBI and DHS Warn of Potential Threats to LGBTQIA+ Events in June

May 14, 2024

May 14, 2024

Foreign Terrorist Organizations Could Target Pride Celebrations The FBI and Department of Homeland Security (DHS) are alerting the public to...

Former Riverside Resident to Plead Guilty to Hate Crimes Against Jewish Men

May 14, 2024

May 14, 2024

Man Agrees to Face Justice for Pico-Robertson Area Shooting A former Riverside resident who shot and wounded two Jewish men...

Teenage Students Fall Ill After Ingesting Cannabis Edibles on Field Trip

May 14, 2024

May 14, 2024

Incident Occurs at La Brea Tar Pits; Students Transported to Hospitals Eight teenage students fell ill during a field trip...

Palmer Candy Company Recalls “White Coated Confectionary Items” Over Salmonella Concerns

May 14, 2024

May 14, 2024

Products Distributed in California Stores Pose Potential Health Risk Palmer Candy Company has issued a voluntary recall of its “White...

Exciting Events Await at Brentwood, West LA, and Palisades Libraries

May 13, 2024

May 13, 2024

From Music, Banned Books to Storytime, Here’s What’s Happening The Brentwood Library was buzzing with energy last Saturday as families...