Learn About Tax Breaks for Buying, Selling and Owning a Home
When it comes to buying and selling property, there are plenty of tax benefits regular Americans don’t know about.
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Read on to learn about how existing tax laws may help you keep more money in your pocket as a current or future homeowner!
Like most homebuyers, you probably have a mortgage loan. And one of the best tax breaks for homebuyers is the deduction on mortgage “points.” Here’s how it works:
When you take out a mortgage, you have the option of paying mortgage point fees to lower your interest rate and monthly payments. Each discount point equals 1% of the mortgage total. If your mortgage loan is $300,000, you can pay up to $3,000, or 100 points.
If you meet the IRS’ requirements, you can get a home buyer tax deduction in the amount you paid for the mortgage points.
And this isn’t just a tax break for first time home buyers: You can also take advantage of this home buying tax benefit if you have refinanced your mortgage or taken out a home equity line of credit.
Unfortunately, the federal government’s first-time homebuyer tax credit is no longer available. However, your state may offer a first-time homebuyer tax deduction or other special tax benefits. In Florida, for example, the Florida Housing Finance Corporation offers several mortgage assistance programs for first-time buyers. So be sure to do your research!
Whether you are a first-time buyer or veteran homeowner, you can take advantage of tax benefits available to all homeowners. Click “Next” to learn more about tax benefits for current homeowners.
By Admin –
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