It’s that time of year again. For those of you feeling blind sided, just think – after tomorrow at midnight you’ll have another whole year before you have to deal with this again.
Congratulations to the homeowners among you! Whether you own a manse or a one bedroom apartment, a rental property or a vacation home – you are reaping one of the many benefits of home ownership: namely, tax benefits!
WAIT FOR IT>>>>>>
One of my favorite benefits for homeowners happens right up front. When you purchase a home, your loan discount points and loan origination fees, commonly known as “closing costs,” are tax deductible – NO MATTER WHO PAYS THESE FEES. You read that right – if your awesome Realtor negotiated that the seller paid closing fees, you still get to deduct them on your taxes. So pull out that three-foot-pile of paperwork from your closing and look for lines 801 and 802 of your settlement statement. Today, my friends, could be your lucky day!
The most basic deduction – Mortgage Interest – benefits anyone who owns property and paid either:
1. interest on the mortgage of the property or
2. interest on a loan of up to 100,000 against your property (a home equity loan.)
This last one is going to feel too good to be true, and you’ll wonder why you didn’t know about this. In fact, you might call me RIGHT AWAY to find out how to get in on this. If you have owned a property and occupied it as your principle residence for two of the last five years, and you sell the property, you are in for a sweet benefit:
Married couples can earn up to $500k on the sale of their home without incurring income tax liability.
Singletons can earn up to $250k on the sale of their home without incurring income tax liability.
*So basically – you can make serious dough fixing up a house and living in it for at least a couple of years, and ALL OF THAT MONEY – every red cent up to half a mil for married couples, 1/4 mil for singles, is YOURS ALL YOURS.
And you thought you hated tax day!!
If you want to keep more of your own money and you are thinking about buying/selling/investing – drop a line. I’m here to help.