Married & Bought home in 07. Better to file jointly or seperately? If we file sep, how do we handle house?

Jointly would be better because of the tax braket it would put you in, heard of the marriage penalty, that is because when you file separately you will be in a higher tax bracket then if you were single. Jointly is always better. The house would go on your schedule A as part of your itemized deductions. as long as the interest, points paid to purchase, mortgage insurance (if any), and taxes equal less then the standards deduction of 10,700 for married. If you file separately, then only one of you gets to claim the deductions and the other has to claim the standard...i think...but I know only one of you gets to take the above costs as a deduction.