There are very few “good things” I can say about the U.S. tax code… in fact, I think it’s long over due for change, but one thing I can say is that there are some benefits to which makes buying a home in Dallas Fort Worth a great idea for almost everyone.
Mortgage interest deductions, including in some cases mortgage insurance premiums, reduce home owners’ tax liability by reducing income. The deduction includes interest paid on both a first and a second home.
Interest on home equity loans is also deductible — whether the borrower uses the money to remodel the kitchen or to take a vacation to Disney World.
Profits from selling a house are potentially a huge windfall. When a home owner sells a primary residence, any profit on the sale of the property is tax free up to $250,000 for single home owners and $500,000 for married home owners filing. Any profit above that is nearly always a long-term capital gain taxed at 15 percent — less if the seller’s tax rate is less than 20 percent.
Home owners can itemize. That opens up opportunities to deduct a host of other items that wouldn’t be deductible if the taxpayer took the standard deduction. Source: The Boston Globe, Leonard Wiener
If you are interested in knowing more about how taxes will affect your home purchase in the Dallas Metroplex, please call us at 800-326-9011 or contact us via email by clicking here!
Tags: Tax Benefits
This entry was posted on Saturday, March 15th, 2008 at 8:51 pm and is filed under Home Buyer, Real Estate, Taxes, Tips for Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.