11
Apr
Use The MCC Tax Credit To Boost Your Home Purchase Power
Comments
Example of the Federal Tax Credit advantage of an MCC:
MCC of $2,000
| No MCC | With MCC | |
| Taxable Income | $50,000.00 | $50,000.00 |
| Mortgage Interest Deduction | $10,000.00 | $8,000.00 |
| Taxable Income | $40,000.00 | $42,000.00 |
| Federal tax liability @15% | $6,000.00 | $6,300.00 |
| Subtract MCC amount | n/a | $2,000.00 |
| Net taxes owed | $6,000.00 | $4,300.00 |
| Annual tax savings | $0.00 | $1,700.00 |
| Purchase power boost | $0.00 | $1,700/12 = $142 |
| Increase in purchase power | $0.00 | $24,000.00 |
To find out how the MCC can boost you purchase power click here.
By David Hughson
MCC Mortgage planner
858-863-0264