Real EstateThe Most Tax Favored Investment Your Home provides shelter from the elements, a basic human need. Over the years, your home should also appreciate steadily, helping you build personal wealth. The third great benefit of home ownership is tax deductability of mortgage interest and real estate taxes. Your monthly housing cost will be greatly reduced by the tax deductability of these expenses, making your home a shelter from another element, taxes. Use the chart below to help determine how much you will benefit. Marginal Tax Rates| Taxable Income | Federal | State | Combined State/Federal | | up to $42,350 | 15% | 8% | 21.8% | | $42,350-102,300 | 28% | 8% | 33.8% | | $102,301-$155,950 | 31% | 8.5% | 36.9% | | $155,951-$278,450 | 36% | 8.5% | 41.4% | | over $278,450 | 39.6% | 8.5% | 44.7% | |
