Home Purchase During Tax Time
This Article On Home Purchase During Tax Time Was Written By Ronda Stepp
Unfortunately one of the constant things we have in our life is paying taxes. It is always a wise endeavor to try and minimize ones tax burden as much as possible. Income tax time is right around the corner this year so I thought it would be good idea to give some great real estate tax tips to help you save money and if you are thinking of home purchase during tax time.
Benefits Of Owning A Home
Owning a home can you thousands of dollars of tax deductions. Some of these deductions include capital gains deduction which allows you to earn up to 250,000 on your own or 500,000 as a married couple. Mortgage interest can be deducted up to $1 million worth. Discount points which help you lower your interest rate on your loan can also be tax-deductible. You can also deduct property taxes.
Challenging High Property Taxes
It can be very upsetting to discover your property taxes are going up. You should educate yourself on how your taxes are assessed. Visit your local assessors office or go online to inquire how property taxes are determined and how they can be appealed. Your real estate agent may be able to help you gather evidence that you can use to appeal your homes assessment. Remember each state has their own deadlines for challenging assessments.
A Home Purchase Can Mean Tax Deductions
A big difference in owning and renting is that you can take advantage of tax deductions. You can deduct your mortgage points from your Loan and you can also deduct your prorated mortgage interest and prorated real estate taxes. You can also deduct the interest from a construction loan to build a new home as long as it is your primary residence. A qualified tax consultant will help you take advantage of every deduction.
Taxes For Divorcing Homeowners
Divorcing is never easy but there are many tax implications that should be addressed with a tax consultant. There are several different ways you can handle the ownership of your house with different tax implications. One spouse can buy the other out as long as you agree on a fair price and can afford the cost of the mortgage. You can also sell the house and split the profit with each other earning up to 250,000 tax-free money. One spouse could also remain in the home to raise the children rather than selling the home. To get the tax benefits of home ownership you will need an attorney to document that the home is still your primary residence. Another option would also be that you and your spouse could share the house for tax purposes. Also consult a tax consultant if you own rental properties together and an attorney to understand all your options.
Benefits Of Home Purchase During Tax Time
Remember it is always best to consult professionals to help you make wise decisions. There can be many hidden tax deductions that the average person does not realize until a professional has been consulted. I hope some of the given information above will help you put your tax puzzle pieces together!
Have great tax year
By Ronda Stepp
About The Author: Ronda Stepp
Ronda Stepp is a writer for Gustan Cho Associates and a forum moderator for Lending Network USA . Ronda Stepp is a licensed real estate agent in both the states of Florida and Texas and has been a top producing realtor year after year for more than twenty years. Ronda Stepp’s passion is to help the public on both their real estate and mortgage lending needs. Ronda is a licensed mortgage loan originator and is an expert in all areas of mortgage lending, from FHA Loans, VA Loans, USDA Loans, Reverse Mortgages, Jumbo Mortgages, FHA 203k Rehab Loans, to Commercial Lending. Ronda Stepp is also a specialist in non-conforming mortgage loan products. Ronda Stepp is available 7 days a week to all of her clients and can be reached at 321-402-4944.