Here at Taxman & Associates, we want to make sure that you are managing your money in the smartest way possible. We all know that debt is something we would all like to be rid of, but how can we make sure that you are using your mortgage debt and cash on hand to your advantage? “Whether to carry mortgage debt into retirement is a perennial hot topic among financial advisers and their clients” says Peter Finch of the New York Times. With interest rates being so low right now, it would be good to talk to your financial advisor or CPA about how to best distribute your income to ensure that you are not over-paying on your mortgage.
According to this article on the New York Times, there are pros and cons to both moving money to your retirement or paying off your debt as soon as possible. “Mortgage debt used to be far more attractive for many Americans, but revisions to our tax laws have changed that. The standard deduction for federal taxes has climbed to $24,400 for married couples filing jointly — versus $12,700 just two years ago. Now many fewer homeowners can itemize deductions on their federal taxes, meaning they will be unable to deduct their mortgage interest”. Other financial advisors say, that if you are feeling cash-strapped and placing all your money into your mortgage, you should look into carrying that debt, after a discussion with your financial advisor, of course.
If you would like to talk to one of our CPA’s here at Taxman to see if we can help you save some money before the tax year is over, call or email us, and we would be happy to set up an appointment.