{"id":263,"date":"2015-09-28T18:01:42","date_gmt":"2015-09-28T18:01:42","guid":{"rendered":"https:\/\/www.juddbuilders.com\/creeksideblog\/?p=263"},"modified":"2017-10-04T17:06:22","modified_gmt":"2017-10-04T21:06:22","slug":"the-tax-advantages-of-buying-a-home","status":"publish","type":"post","link":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/2015\/09\/28\/the-tax-advantages-of-buying-a-home\/","title":{"rendered":"The Tax Advantages of Buying a Home"},"content":{"rendered":"

\"Holding<\/a><\/p>\n

Aside from having your own place and setting it up exactly how you want it, there are other benefits\u00a0of buying a home, financial benefits. As a homeowner, taxes become more complicated than if you are renting but it is worth it when you see the money you will save at the end of the day.<\/p>\n

How deductions work:<\/strong><\/p>\n

There are deductions and credits in the tax world. Credits are like a coupon, they are taken off of your bill.\u00a0A tax deduction reduces your adjusted gross income, which then\u00a0reduces your tax liability. So, if you\u2019re in the 25% tax bracket, your tax liability will be reduced by 25% of the total claimed deduction. If you claim a $2,000 deduction you can expect your tax liability to drop by about $500.<\/p>\n

The most common types of deductions<\/strong> include mortgage interest, real estate taxes, points and private mortgage insurance (PMI).<\/p>\n

For the most part, you can probably deduct all of your home mortgage interest<\/strong>. There are some exceptions such as\u00a0there being a $1 million yearly cap on the amount you can deduct but that probably doesn\u2019t apply. You can even deduct late fees in many circumstances.<\/p>\n

The money you pay in property taxes<\/strong> is deductible also. You\u2019ll find the amount on your 1098 form if you pay for your taxes through a lender escrow account. If you pay directly to your municipality, you have personal records in the form of a check or automatic transfer.<\/p>\n

With a new loan, you may have paid points<\/strong> to your lender.\u00a0Points are normally priced as a percentage of the total. As long as you actually gave the lender money for these points, you will get a deduction. If you refinanced your loan, you get a deduction for points over the lifespan of the loan. Ever time you give a mortgage payment, points are put into the loan which can be deducted each month you made payments.<\/p>\n

Private mortgage insurance:\u00a0<\/strong>If you took out a loan in 2007 or later, you may be able to deduct your PMI.\u00a0If you\u2019re single and your gross income is less than $50,000, you\u2019re eligible for the deduction. For those who are married, the starting point\u00a0is $100,000.<\/p>\n

For the full article on tax deductions when buying a home, click here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Aside from having your own place and setting it up exactly how you want it, there are other benefits\u00a0of buying a home, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90,2],"tags":[103,71,53],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t