Can someone give me the 101 on deducting interest and taxes? I know it depends on personal situation and I should get a pro opinion but.. if theoretically I have 1M in mortgage, at 7% that is roughly 70k in interest, and assume 10k in property taxes. Do I get that “back” from other taxes that I paid during the year? Or how does it work?

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You deduct in from your income so let’s say your income is 200K and you pay 20% in taxes so 40K
When you deduct the 90k above, now your income is 110K and you pay (assuming it is still 20%) you pay 22K in taxes.
So the savings are those 18K difference

Also you can only deduct interests on up to a 750K loan just FYI

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