Tax Breaks, yet another good reason to be a homeowner! Many potential homebuyers are still sitting on the fence, wondering if they are better off continuing to rent, live with Mom & Dad, or should they buy a home? There are a lot of risks with owning a home, but there are a lot of benefits too. The pride that comes with owning your own home is a great benefit in terms of happiness. It can provide a person or family with a sense of stability, permanence and roots. It can give you a sense of freedom in that you can make choices in your home environment in a way you can't when renting, or living with others.
Tax Breaks, yet another good reason to be a homeowner!
In addition to the emotional benefits that come from owning your own home, tax breaks can be a pretty good incentive to buy. To begin with you can write off your annual property taxes, and the points paid in the year you bought the house, even if the seller paid them for you.
A lot of people don't realize that you can deduct the interest on up to $100,000 in home-equity debt each year, no matter what you use the money for. doing this can give you a low-interest alternative to a car loan or student loan, as long as you make sure that you can afford to continue to make the payments so you don't put your home at risk.You can also use the cost of major home improvements to increase your tax basis when you sell. Although, most people don't actually owe income taxes on profits made from a home sale anymore. As long as you've lived in the house for at least two out of the past five years, you can exclude $250,000 from the profits of your home from your taxes if you're single; $500,000 if married filing jointly.
Tax Breaks, yet another good reason to be a homeowner!
The tax break for energy-saving improvements is back. If you installed new windows or doors to your home, or made other qualifying improvements in 2012, you may be eligible for a tax credit. Or, you can make the improvements this year and be eligible. Click here fro more information Tax breaks for homeowners.
Information found on MSN Money. To read more: MSNMONEY.com
