If you are a homeowner then you enjoy several tax benefits that non-homeowners don’t. Below are some tax savings you can take advantage of if you are a property holder.
Mortgage Points
When you set up a mortgage plan, you are charged points by the lender. Each of these points represents one percent of your mortgage amount, and for every point you pay, you can deduct that amount for tax purposes.
Real Estate Taxes
Real estate taxes, or property taxes, are fully deductible from your Federal tax returns. The benefit of this deduction is that it is not a one-time tax deduction but on-going benefit of owning a home. You are able to deduct the property taxes for each tax year that you own the home.
Seller Costs
If you sold your house in 2011 then you are able to deduct the selling costs on your tax return for that year. Some of these costs include real estate agent commission, marketing fees and fees the seller is responsible for paying when the buyer sets up a new mortgage.
Mortgage Interest
Generally, the mortgage interest you pay is fully tax deductible. This deduction especially comes in handy during the first few years of the mortgage when the majority of your payment is interest.
Owning a home comes with several benefits. One of these benefits is the ability to write-off certain costs that come along with homeownership from your yearly tax returns, which could result in huge tax savings.