As we wrap up tax season, I think it’s important to address what tax benefits are available through home ownership. For more information on each topic, click on the title. It is also recommended to review the strategies with your accountant and financial planner.
Deductible
Most purchasers of a home do not have the money to purchase the home out right making mortgages almost synonymous with home ownership. To encourage home ownership, the IRS allows the interest you pay on a mortgage to be tax deductible.
Depreciation
The IRS understands that when owning a house, you must fix and maintain a property overtime. This is considered deprecation and the depreciation of your house is deductible.
Deferment
Deferring taxes is a benefit at the purchasing and selling stage of home ownership. Essentially, the IRS allows you to roll your money from one asset to another without paying taxes on the profits earned.