|
Owning
Versus Renting
Attention
renters! The shelter you rent may very well be costing you more
than the home you could own. How much is that roof over your
head really costing you?
Owning
Versus Renting Can Make A Significant $$$$$ Difference
|
| Assumptions |
In
this example, a married couple decides to own a $95,000 home at
8.5 % interest. They put 5% down payment. Their combined adjusted
gross income is $51,000 per year.
|
 |
Owning
a Home |
Renting |
The
Difference |
| Monthly
Expenditure |
$975
PITI |
$1200
Rent |
-- |
| Months
per year |
12 |
12 |
-- |
| Yearly
expenditure |
$11,700 |
$14,400 |
Renters
lose $14,400 in rent per year, while homeowners build equity.
|
| Adjusted
Gross Income |
51,000 |
51,000 |
And
pay less per month |
| 2
Individual Exemptions |
5,500 |
5,500 |
-- |
| Interest |
7,671 |
0 |
-- |
| Property
Taxes |
2,800 |
0 |
-- |
Deductions
Medical & Charities |
1,000
Standard |
7,200
Standard |
-- |
| Net
Taxable Income |
34,029 |
38,300 |
-- |
| Marginal
Tax Rate(s) |
15% |
15% |
-- |
| Income
Tax Owed |
5,104 |
5,745 |
Homeowners
pay $641 less per year in taxes. |
These
estimates may vary based on your individual income, tax bracket, number
of dependents and deductions. The information contained herein is based
on 1999 figures. Tax rates may increase in 2000 making ownership even
more advantageous. These estimates have been verified by the accounting
firm of Austin, Berrier, Darling & Co., P.C. (512-454-6010) and are
subject to change.
1999
Tax Rate Schedule For Individuals
| Filing
Status |
Taxable
Income |
Marginal
Tax Rate |
| Married, Filing Jointly |
Under
$43,050 |
15% |
| $43,050
to $104,050 |
28% |
| $104,050
to $158,550 |
31% |
| $158,550
to $283,150 |
36% |
| Over
$283,150 |
39.6% |
| Standard
Deduction |
$7,200 |
| Single |
Under
$25,750 |
15% |
| $25,750
to $62,450 |
28% |
| $62,450
to $130,250 |
31% |
| $130,250
to $283,150 |
36% |
| Over
$283,150 |
39.6% |
| Standard
Deduction |
$4,300 |
|
