Tax Deductions Make it Possible For You to Afford a Home

 Taxpayers are allowed to deduct the interest paid annually on their mortgages, as well as loan origination fees, points paid at the time of purchase and certain real estate taxes. This really benefits first-time home buyers because in the early years of a typical mortgage, virtually all of your mortgage payment is interest. For most taxpayers, all of this interest is tax deductible.

The upshot of this is that while monthly living expenses may increase, you'll be able to change your tax withholdings to take more home each month, because you're overall tax load will be lower.

Be sure to check with your tax professional on all deductions that you are entitled to as a homeowner.

The tax benefits of home ownership continue when you sell your home. Save all your records concerning home improvements and repairs you make over the years. When you sell your home, you'll have to report to the IRS how much profit you made on the sale of the house and how much was investment dollars. The money you spend on improvements will count as additional investment and offset the amount of profit you realize on the sale. By the IRS' definition, improvements include adding storm windows, upgrading insulation and heating/cooling systems and additions such as pools, saunas, tennis courts or decks.

  If you're interested in starting the home buying process, or simply have questions, please call or e-mail. Add any special requests you have in the comments section. 

ADVANTAGE JANES REALTY cooperates fully with all other real estate companies and we have access to all available listings in our area.  As experienced Real Estate professionals, we will provide the dedication, honesty, and outstanding service that each client deserves. I look forward to working with you.