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Tax Advantages to Homeownership

There are distinct tax advantages to owning a home in Wichita Kansas or anywhere else. These, combined with the pride of ownership and having a great investment, are just a few of the reasons people want to buy and sell  real estate.

Congress allows a homeowner to deduct the qualified interest and property taxes from their income on a first and second home. In most cases, this will far exceed the standard deduction and provide the homeowner with significant tax savings.

The second major tax advantage to home ownership is that the owner can avoid paying capital gains tax when selling their principal residence. A single person is able to make up to $250,000 profit without paying a gains tax, while a married couple can earn $500,000 without paying any taxes. You must have lived in the property at least two out of the last five years to qualify.

And you can take that to the bank!

Thanks to Greg Fox for contributing to this post.

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September 25, 2010 - Posted by | Uncategorized | , , , , , , , , ,

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