If you knew of a way to reduce your taxes by $18,000 - $81,000 Would You Choose to Ignore It?

Why Not Save $18,876 to $81,000 in Taxes via the Mortgage Interest Deduction?

The LA Times had a fascinating article this weekend about how much money middle and upper-class American families have been able to save via the Mortgage Interest deduction.  The studies show that Californians more than residents of any other state take advantage of the Mortgage Interest deduction, saving on average $18,876.  For earners at the higher end of the scale, some estimates are around $81,000 in savings.  WOW!  (So if you're not taking this deduction, you're likely giving a comparable amount away to Uncle Sam.  He appreciates your gift too.)

Check it out for yourself.  http://www.latimes.com/business/realestate/la-fi-harney-20121028,0,7128558.story

I remember the days when I was a W-2 employee.  As a W-2 employee without any dependents, it is difficult to look at the large difference between one's gross salary and one's net salary.  The Mortgage Interest deduction allows you to get a SUBSTANTIAL amount of that money back when you file your taxes or to decide not to give a no interest loan to the government.  If you knew of a way to reduce your taxes by $18,000 to $81,000 would you choose to ignore it?

I took a number of tax law classes during law school because I'm a nerd who LOVES the tax code. I know first-hand that the US Tax Code currently encourages Americans to buy homes (admittedly, bigger homes) and to start small businesses.  Thus, my suggestion to those of you who are W-2 employees are:
#1 Buy some real estate and take advantage of these 30-year-fixed interest rates that are below 4%; and
#2 Start a small business on the side to get your deductions and to create more jobs for other Americans. 

As always, I'm more than happy to help you develop your wealth plan! Call or email me for more information. 310-482-2414 and  marcelanderson@kw.com.