rbynaker
Level 14
12-07-2019
03:15 AM
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Yep. For VA I really have to look at anything where itemized deductions are in the ~$20K-24K range. Depends on what federal tax bracket they're in and the ratio of property taxes to SALT cap.
A quick example. MFJ TP has $10K of RE taxes and $12K of mortgage interest. Itemizing on federal costs $2K higher TI x let's say 24% = $480. Itemizing on VA (allowed only if itemizing on federal) saves $22K - $6K (VA SD) = $16K lower TI x 5.75% = $920.
A quick example. MFJ TP has $10K of RE taxes and $12K of mortgage interest. Itemizing on federal costs $2K higher TI x let's say 24% = $480. Itemizing on VA (allowed only if itemizing on federal) saves $22K - $6K (VA SD) = $16K lower TI x 5.75% = $920.