Monday, January 2, 2012

Less debt, more taxes

I am doing my taxes on Turbotax this year, and even though I made about the same amount of money this year, my taxes are a lot higher.  With no deductible mortgage interest and a lot less deductible property taxes, my Federal tax bill will be maybe $2500 higher this year.

Now some folks would say, "Well, see, it pays to have a mortgage, as you pay less in taxes!"

But what they are failing to see is that the year before last, I paid over $15,500 in mortgage interest.

Ouch.  Which would you rather pay, $2500 in taxes or $15,500 in interest - if you had the choice?

You cannot deduct your way to wealth!

Never confuse a deduction with making money.  They ain't the same thing.

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