Are you ready to own a home? For first-time homebuyers, now is a great time to start looking for property! The housing market is on the upswing and it’s easier than ever to secure a loan from the bank. While buying your first home seems like a big step, there are a number of tax deductions available to homeowners that make it worth it! If you are a first-time buyer or new homeowner, let us guide you through the tax benefits of homeownership:
Mortgage Basics:
A mortgage is a loan received to finance the purchase of a home. A bank or mortgage lender will loan you a sum of money that you are required to pay back over a set period of time with an added interest rate. A mortgage is typically made up of principal payments, interest charges, taxes and insurance.
Tax Deductions:
A tax deduction is available to taxpayers of all income levels. The purpose of a tax deduction is to decrease your taxable income and to decrease the amount of tax you owe to the federal government. If you are a homeowner, you will benefit from huge deductions during tax time.
Homeowner Tax Breaks:
As a property owner, you receive big tax deductions on a number of home-related expenses! For homeowners, the largest tax break you will benefit from is your mortgage interest. You are able to deduct the interest of your mortgage up to one million dollars. This is a big annual deduction that you will love come tax season. Another deduction you will benefit from is property taxes. Each year you will receive annual tax deductions if you own your home and pay property taxes.
Three Rivers Association of REALTORS® is a non-profit organization serving the community with over 1,000 licensed real estate agents. www.trarealtors.net
