Buying a home
The house: A median-priced Chicago-area home, $107,000.
The mortgage: 30-year fixed-rate, 9.875 percent interest, on 90 percent
($96,300) of sale price.
The points: 3 percent of loan value, $2,889.
The interest: For the first year, $9,485.20.
The property taxes: Based on equalized assessed valuation of median-priced home in Cook County, $1,462.
The deductions: $2,889 + $9,485.20 + $1,462
$13,836.20.
The federal tax break: In 28 percent bracket, $3,874.13; in 33 percent bracket, $4,565.94.
The state tax break: 2.75 percent of twice the property-tax amount, $80.41.
Selling a home
Original purchase price: $95,000.
Sale price: $110,000.
Adjusted cost, or basis (6 percent broker`s commission, attorney fees, improvements subtracted from sale price): $100,000.
Potential capital gain (if not rolled over into subsequent purchase within 24 months, or excluded because seller is 55 or older): $10,000.
