Real estate tip: Larger mortgage may offset taxes

Will my income tax automatically increase if I buy a more expensive home?

No. If you have larger mortgage payments and higher property taxes, your income tax bill is likely to go down–perhaps offsetting the higher real estate taxes you will pay on the more expensive property. This is because mortgage interest and property taxes are deductible from your federal income tax and most state income taxes. Consult an accountant for an accurate estimate of how much you might be able to deduct. *** Send a Letter to the Editor for publication.Send a comment or news tip to our newsroom. Please include the headline of the story....