Tax Benefits of Owning a Home

It’s that time of year again…tax time! If you purchased a home in the last year, you might be in for a pleasant surprise. Check with your tax accountant, but you may be able to deduct the following items:

· Mortgage Interest Payments: Mortgage interest is usually deductible on a primary residence, as well as on a second home that meets certain requirements.

· Mortgage Insurance Payments: aka MIP, PMI

· Points (Loan Discount or Mortgage Origination Fees): The points that you paid to your lender upon purchase of a home, or even the points that were paid by the seller on the buyer’s behalf, may be tax deductible as a prepayment of interest if certain basic requirements are met.

· Property Taxes: These annual taxes are based on the assessed value of the property and may lead to a considerable deduction each year.

· Home Equity: The interest paid on home equity loans could mean tax benefits that are not available through other credit sources.

Once you get your big refund check, you might want to consider putting it towards a home renovation project that you will not only enjoy for years to come, but help boost your resale value! Check out my next blog post with Remodeling magazine’s Cost vs. Value Report information.

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