LAKE HAVASU CITY ON REAL ESTATE
TAX SAVINGS OWNING A HOME!
Owning
a home provides privacy, security and a sense of community. But aside
from many personal advantages, homeownership comes with a major
financial advantage - tax benefits.
Benefits for taxpayers include:
· Most homeowners can deduct property taxes and interest paid on their mortgage every year of ownership.
·
Homeowners can borrow against the equity they build. Equity from a home
can be used to improve the property, buy a car or pay for an education,
and homeowners may have the ability to deduct the interest from their
federal taxes. Renters never have this opportunity.
·
Single taxpayers who qualify owe no tax on the first $250,000 of gain
from the sale of a principal residence. The amount is $500,000 for
married couples filing jointly.
·
Interest paid on a second mortgage may also be deductible if the total
of the first and second mortgages is no greater than $1 million.
·
Certain moving expenses may be deductible if the move is job-related
and the relocation is 50 or more miles from the previous residence.
·
Depending on where you live, certain real estate tax exemptions apply
for people who meet specific criteria, such as disabled war veterans
and their surviving spouses are exempt from real estate and property
taxes in some states.
Is there a
best time of year to buy a home? In regards to your income tax return,
the earlier in the year, the better. If you purchase a home during the
first six months of a year, you have more months of deductible mortgage
interest. Of course in the long run, owning a home will save you money
on your taxes, regardless of when it is purchased.
For buying or selling real estate in Lake Havasu City, call Dean Baker Owner/Broker Lake Havasu City Properties, 16 years experience, over 600 homes sold in Lake Havasu.
Cell phone 928-486-3368or (888) 854-7210.