It’s tax season again and thoughts of home ownership weigh heavily on the minds of renters and other prospective homebuyers. Renters are often apprehensive about the financial responsibility of owning a home. The professionals at Coldwell Banker® want to remind taxpayers that ownership, rather than renting, offers financial benefits. Below are tax incentives for home ownership, but as always, taxpayers should seek the advice of a financial professional:
- Deductible property taxes and interest. Most homeowners can deduct property taxes and interest paid on their mortgage for each year of ownership.
- Borrowing against equity. Homeowners can borrow against the equity they have built up in their homes. Equity from a home can be used to improve the property, buy a car or pay for education.
- Real estate tax exemption. Depending on the state, certain real estate tax exemptions apply for homeowners who meet specific criteria.
- Yearly home appreciation. Although it is not a tax advantage, homes build equity over time. Renters receive no financial return on monthly rental costs.
For Your Real Estate Needs: Visit our website at www.ronbrown.com or call us at 361-575-1446.
Source: cbworks