How to Take Advantage of Homeownership When Filing Your Taxes

Tax real estate picture

Don’t forget to take advantage of homeownership when you file your tax returns this year…

Mortgage Interest

The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.

Closing Costs

The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. If you need a copy of your settlement sheet to give to your accountant, we can send it right away.

Property Tax

Real estate property taxes paid on your primary residence and vacation home are fully deductible for income tax purposes.

Home Equity Lines

In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit). This allows you to shift your credit card debts to your home equity loan, pay a lower interest rate than the horrendously exorbitant credit card interest rates, and get a deduction on the interest as well.

Don’t Own a Home? Should You?

In addition to the tax advantages of homeownership, owning is cheaper than renting in most cases. Buying is 52% cheaper in the greater Philadelphia area when compared to renting thanks to low mortgage interest rates and rising rents. Homeownership nationwide has actually become a better deal, 38% cheaper than renting on average.

Happy to help!

Call: 484-540-5366, Email: Team@SettleSensibly.com

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Call: 1-877-296-6639, Email: Mike@KBmortgagellc.com

 

Photo courtesy of freedigitalphotos.net/bluebay
By | 2017-07-28T01:13:46+00:00 March 23rd, 2015|Homeownership|0 Comments

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