Posted: October 9th, 2022

calculate your taxable income after one year of mortgage interest and property tax deduction

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1. What is your taxable income in 2022?
Assumptions:
a. You purchased a primary home on January 1st, 2022
b. Purchase price of a SFR in Irvine: $1,100,000
c. Down payment of 20%
d. Mortgage information 30 Year Fixed Rate @ 6.00%
e. Your household income is $260,000 per year (assuming there are no other deductions for your household, except interest deduction from your primary residence).
f. HOA is $300 per month and monthly property insurance is $150.
g. Please calculate your taxable income after one year of mortgage interest and property tax deduction. (Hint: Property tax rate of 1.25% and The Tax Cuts and Jobs Act of 2017 set a limit on interest deduction of total mortgage debt at $750k)
h. Mortgage calculator: https://www.amortization-calc.com/
Answer (show your work):
2. What is the minimum monthly income to purchase this home?
Please calculate the household income needed to purchase this single-family house:
304 Otero, Newport Beach, CA 92660
https://www.redfin.com/CA/Newport-Beach/304-Otero-92660/home/4643907
Please go to the above link and find all the information that you need to calculate the household income that is needed to purchase this house.
a. Debt-to-Income Ratio (back-end ratio) of 43%
b. You currently have a car payment of $350 per month.
c. You currently have a student loan payment of $500 per month.
d. You have a credit card debt of $10,000 with a minimum payment of $200 per month.
e. You have the 20% down payment, and you are pre-approved for a 30-year mortgage at 6.00% interest rate. (Hint: Property tax rate is 1.25% and property insurance is $1500 per year)
f. Mortgage calculator: https://www.amortization-calc.com/
Answer (show your work):

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