Taxpayers Listen Up!
Owning a home has its perks, especially during tax season.
Why pay someone else’s mortgage when you can pay your own and get the tax write offs as a bonus? Owning your home is a savvy investment that forces you to save money and build equity in your future.
If you are a home owner who itemizes your tax deductions, you have the ability to subtract your mortgage interest, private mortgage insurance interest, and property tax payments from pre-tax income.
Added tax breaks for homeownership include writing off your points. This means, if a borrower pays points on their mortgage in exchange for a reduced mortgage rate, they can take a full point deduction if it’s their primary residence.
Work from home? Don’t forget the home office deduction also. The Internal Revenue Service allows homeowners who work from home to deduct a portion of their home expenses necessary to conduct business such as electricity and internet service.
On the flip side, when you are ready to sell and cash in on that monthly equity you’ve been building, homeowners may exclude, up to a limit, the capital gains they earn from selling a home. Naturally, the longer you are in your home, the better.
Call me at (719) 447-7915 if you are looking to buy a home in Colorado Springs. I can help you start the process!Questions? Contact The Shane Ray Team Today!