my girlfriend of 4 years and I just had our offer accepted and the earnest money has been dropped off. If everything goes well we will have our first home by Christmas.
We live in Vancouver Washington and neither of us believe in marriage. But considering we do get this house, would we make more money if we were married?
I have a friend that got married in Portland Oregon and 3 years after he was married the government started requiring them to pay more taxes. They went to a tax consultant which told them that marriage was set up for people to either have kids or buy a house.
Probably because together, they made more money!
Married couples get a tax break, but I wouldn't get married for another deduction! :)
Trust me - this will cost you :)
But you should do it anyway if you love her!
Your total taxes could rise or fall depending on your individual tax brackets and in whose name the property is titled. It should be fairly easy for an accountant to figure it out for you if you provide them with your financials.
We were married last year in NH...we are a gay couple who have proudly been together for 23 years--lots of love between us. I am also wondering how our taxes will change because of this new tax status? I am hoping for the better but from the looks of these responses, maybe not. I am meeting with our accountant on Monday and should have more answers. Congratulations on getting your first home. Houses are like people love them, accept them as they are, and don't forget to accessorize.
Your question is "would we make more money if we were married?"
The obvious answer is NO, you would make the same total amount of money as a married couple that the two of you make as single individuals.
I am guessing that you really wanted to know about your net income after taxes. As a general rule, two incomes are taxed more as single individuals than it would be taxed jointly as a married couple. Your married friend and his spouse evidently got promotions and/or raises that increased their total taxable income, and consequently, their tax bill went up.
However, you said that you were buying a house together and then asked your question. Now I am wondering if you are asking if the profit on the sale of a house you own together would be taxed differently if you were married vs single. The answer is NO. The combined capital gains tax (if any) on the sale of a house owned by two single individuals is the same as it would be if the two owners were married.
It can be more or less depending on your income relative to your spouse. Google "marriage penalty tax", I suspect your friend is in that situation.