Almost everyone knows that so you need to know about it in
it’s better to own your advance.
house than to rent it.
After all, when you pay rent, it • Home mortgage interest
goes to a landlord and when you deductions. Every year, you pay
pay down on a home, it goes to a mortgage on your home. And every
future investment in a valuable year, you can deduct the interest
item. But did you know that of that mortgage from your taxes.
owning real estate can have other Interest is deductible on any
advantages, too? Specifically, amount up to one million dollars
did you know that there are a of home mortgage – so unless
number of tax benefits to owning you’re buying a mansion, you can
real estate that those people who probably deduct all of your home
just rent will never be able to mortgage interest.
take advantage of? If you’ve been
thinking about purchasing a home • Home equity interest
but haven’t yet made the plunge, deductions. When you take out a
here are some of the tax benefits home equity loan, it will also
that you might want to think have interest and this interest
about: is also deductible on your taxes.
Interest on up to $100,000 of
• Closing costs. In the year that home loan debt can be deducted.
you first purchase your home, you
can deduct some of the closing • Real estate tax deductions. You
costs on your taxes. This is true have to pay real estate taxes but
even if the seller was the one you can get some of that money
that paid your closing costs, back as a deduction at tax time.
meaning that you’re basically
getting free money. This is only • Remodeling improvement
good in that first year, though, deductions. If you make major
changes to your home, you may Buying a home has a number of
increase its value which ups the different benefits that you can
tax basis and saves you money probably think of on your own.
later on. But you might need help figuring
out all of these tax benefits.
• Sale of your home. In the Working with a professional who
future, when you go to sell your is knowledgeable about the
home, you can actually get a tax ins-and-outs of home ownership
break on the money that is earned tax deductions can help you to
from the sale. There are some save money each and every year
rules to follow here (and it’s that you own your home. This
always best to work with a means that when income tax time
realtor and a tax attorney to comes around and all of the
make sure you’ve followed them renters that you know are
correctly) but basically, if you groaning that they have to send
lived in the home for at least money to the IRS, you’ll be
two years, you can get at least smiling and tucking your savings
$250,000 from the sale of the away."
home tax-free.
About the Author:
Kinan Beck is the Broker and co-owner of One Source Realty in Austin Texas. Visit Kinan’s Austin Real Estate Guide, visit his Austin Realtor.
Read more articles by:
Kinan Beck
Article Source: www.iSnare.com 
