Tax Benefits of Home Ownership
Posted March 23, 2014


For some home owners and buyers, there are favorable tax benefits that can and should be taken advantage of. Since we are getting closer to April 15th, or "tax time" lets remind ourselves of the possibilities.

The interest part of any payments made on a house you purchased last year can be deducted on your taxes. If your purchase date was any day other that the first day of the month, you most likely paid a daily interest charged for the time between the closing day and the end of the month. Go over your contract information to find this item and amount. If you have questions, you can consult a realtor or the IRS.

In the majority of cases, any loan discount points and origination fees are tax deductible to the buyer. A homeowner can benefit on taxes by re-selling their home under certain circumstances if the home is occupied by the owner for at least two of the last five years. For more detailed information, please check the irs.gov website or your tax filer.

For the home owner who has taken out a home equity loan, any interest paid is deductible. The interest rate on this type on loan is usually lower than the rate on a credit card. Always remember that through a home equity loan you are pledging your home as collateral. If you fail to make payments you could lose your home to foreclosure.

Again, talk to your tax filer or check the irs.gov website if you have question about which home mortgage expenses you may be eligible for.

Posted By: Michelle Keaton-Barrow
March 23, 2014 10:57 PM




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