What personal income tax deductions can you make on your yearly tax returns when you own your own Personal home?
2007-12-08 16:46:45 · 6 answers · asked by Photo S 1 in Business & Finance ➔ Taxes ➔ United States
The two most common are the mortgage interest deduction and the property tax deduction. If they total more than your standard deduction amount you'll get some tax reduction for them.
The big advantage to owning your own home is the capital gains tax exclusion when you sell if you've owned your home and lived in it as your principal residence for 2 years or more. That can lead to tens of thousands in tax savings.
2007-12-08 16:56:05 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
If you itemize, you can deduct interest on mortgage payments and real estate taxes as itemized deductions. Those two amounts are often high enough especially in the first several years of a mortgage to allow you to itemize. Your tax savings from itemizing will be your total itemized deductions, minus your allowable standard deduction, then the amount of the difference times your tax bracket.
2007-12-08 19:17:11 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Unfortunately, not much tax benefit, except you can be a proud home owner & take care of everything related to it instead of calling to an arrogant landlord. For tax purposes, if you itemize, your mortgage interest and real estate tax is deductible, and if you sell it, you don't have to pay tax for a certain amount. ( Single-$250K, Married Filing Jointly-$500K ). Excess amounts are taxable. There is something called "First Time Homeowner's Credit" if you in the Washington DC, which gives about $5000 credit (Single- $2500). That is about it.
2007-12-08 18:11:58 · answer #3 · answered by Q 3 · 0⤊ 0⤋
You can deduct all the interest paid on your mortgage. This will be the highest the first few years. It's a good time to think about buying but you need to stay put for at least 2-3 years to make up for closing costs, etc. You should put at least 10% down. Good luck and make sure to hire a real estate attorney. Realtors are real slime.
2007-12-08 16:56:46 · answer #4 · answered by sunspot 1 · 1⤊ 0⤋
If the two one among you're the two in charge for paying the non-public loan and the actual materials taxes, then split the quantities of actual materials taxes paid and a million/2 the non-public loan interest for the 365 days. to try this you may the two be the two in charge and on call/deed to the valuables. the guy(s) who get the tax advantages of possessing a house are people who owe the non-public loan and who pay the non-public loan...uncomplicated as that.
2016-12-10 17:09:38 · answer #5 · answered by figueredo 4 · 0⤊ 0⤋
mortgage interest, home repairs, etc
2007-12-08 19:51:22 · answer #6 · answered by GG 7 · 0⤊ 1⤋