The Tax Advantages of Homeownership

There are many tax benefits that homeowners get to take
advantage of. I’ll cover a few that you should know about
today.





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There are many tax advantages that come with homeownership. We
helped a record number of new homeowners this year, so we want
you to know which tax deductions are available to you. By all
means, please talk with your tax adviser before you actually
handle these deductions on your annual return. 1. Mortgage
interest: You can deduct the total amount of interest paid
every year against your taxes. 2. The cost of your loan or
loan points: You can deduct the cost of your loan or the
points that you paid for that home loan against your current
year tax return. In other words, those are 100% deductible in
the year you actually bought the home. 3. Deductions for a
home equity line of credit: If you take out a home equity
line of credit to transfer some of your credit card debt and
get a lower interest rate, then you can deduct that interest
rate on your home equity line of credit. You cannot deduct the
interest rate if it’s on your credit card. If you take out a
home equity line of credit in order to make a substantial
improvement to your home, you are also able to deduct the
interest to the money used against your home equity line of
credit. Remember, there are some limits on the deduction
amounts for your home equity line of credit. The benchmark for
couples is around $100,000 if they file together, and $50,000
when filing individually. That is a lot of interest that you
can balance off of your taxes. 4. Property taxes: You
can write off 100% of your property taxes. That includes both
state and federal property taxes.


Your property taxes are 100% deductible.

There are a few other notable deductions that you may
qualify for. Ask your tax adviser for more information
about:


Home office deduction

Selling cost deduction

Capital gains exclusion

Moving costs (if you are relocating because of your job)



Again, check with your tax adviser before you try to take
advantage of any of these deductions so that you know exactly
what you are getting into.



If you have any other questions about the benefits of
homeownership, tax or otherwise, just give us a call or send us
an email. We would be happy to help you!