There are many reasons for purchasing a home. A home is security, an investment, and the best tax shelter the government allows. Now that you are in your home, it is important for you to realize that you do not have to wait until the end of the year to realize your tax savings. Your cash flow can be improved almost immediately.

Let’s say that your employer withholds $1,200 in federal and state taxes from your monthly paycheck. Before you purchased a home, this rate of withholding would have resulted in little or no tax refund check next year.

Your mortgage payment may lower your tax obligation by $100 to $400 monthly. If you increase your exemptions with your employer (via a very simple form), your take home pay will go up immediately and you will not have to wait until next year for your tax refund.

Of course, these numbers are merely an example and it is important for you to get real tax advice from a qualified accountant or tax advisor. I would be happy to work with your accountant to derive precise numbers, or if you do not have an accountant, I can refer an excellent practitioner to you. Just give me a call if you are interested in my assistance in this regard.

What do you have to gain but hundreds of dollars every month? It makes sense for you to have this money on a monthly basis instead of the government holding it for you.