Wichita Home

All About Wichita and Wichita Real Estate

Own Your Home and Ease Your Tax Burden

Among all the other great benefits to owning your own real estate in Wichita taxes are a big consideration. Besides the fact that a lot of first time home buyers end up laying out less cash every month on a mortgage then when renting you can also use your home to offset your taxes every year. Here’s how.

Tax credits:

Now that the great $8000 tax credit scheme is over that doesn’t necessarily mean that the Gov is finished handing out money. Keep your eyes and ears open for tax breaks concerning your home. For instance right now there is a big energy tax credit happening. Just be aware  of what’s being offered when.

Deductions for loan fees:

Typically, you can deduct the “prepaid interest” you paid when you got your mortgage loan. That includes points, loan origination fees, and loan discount fees listed on your settlement statement, even if the seller paid those fees for you. Each time you refinance your home, you can deduct prepaid interest fees.

Property tax deductions:

American home owners shouldn’t be paying property tax at all, but as long as their going to make us, we may as well take the tax benefit from it at the end of the year.  Homeowners are entitled to deduct the closing costs from the purchase and property taxes every year.

Mortgage interest deduction:

Homeowners are allowed to deduct interest and late charges. If you paid PMI you can deduct that too.

Home office:

Pretty self-explanatory. If you use your home as an office you can deduct that business expense.

Selling your home?:

In the year you sell your home, you can deduct the costs of selling it, including real estate commissions, title insurance, legal fees, advertising, administrative costs, and inspection fees. You can also deduct decorating or repair costs you incur in the 90 days before you sell your home.

Profit on your home:

If you live in your home for at least two years the Government allows you to take up to $250,000 of profit on the sale tax free. $500,000 if your married. This is only for your primary residence.

These are some of the ways your home can help ease your tax burden every year. Be sure to talk to a qualified accountant to discuss your individual tax circumstances.

Remember, Uncle Sam wants your money. You need all the help you can get to keep it!

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October 7, 2010 - Posted by | Uncategorized

1 Comment »

  1. […] This post was mentioned on Twitter by Joel Weihe, Joel Weihe, Joel Weihe, Wichita Rose Society, Joel Weihe and others. Joel Weihe said: Own Your Home and Ease Your Tax Burden http://bit.ly/cWKJLC […]

    Pingback by Tweets that mention Own Your Home and Ease Your Tax Burden « Wichita Home -- Topsy.com | October 8, 2010 | Reply


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