with today's increasing cost of commuting, location (in terms of proximty to your place of work) has become a more significant factor in determining where to purchase your next home.
the graphic to the right illustrates the impact of commuting costs on the initial choice of a $500,000 home with a 30 mile one way commute (5 trips per week) and the price of alternative homes with decreasing commute distance (in the same jurisdiction) that yield an equal pre-tax total monthly cost.
comparisons across
jurisdictions will alter these results in proportion to the difference in tax rates. this example assumes a gasoline price of $3.90 per gallon and a 30 year, 20% down mortgage with an interest rate of 6.75%.
after tax cost savings result from the transfer of non-deductible commuting expenses into deductible mortgage interest and city/county property tax payments.
if you are self employed and deduct car expenses on your federal taxes, the after tax savings will not apply.
