Tax Benefits of Owning a Home
Now, more than ever, people in all walks of life are
looking into the many benefits of home ownership. The
tax benefits of owning a home can be enjoyed by those
who have a single property, or by those who have both
a primary and secondary residence. In basic terms, mortgage
interest and property taxes can be deducted from tax
calculations for a primary residence. If a second residence
is involved, the same advantages apply, but depreciation
allowances are made if a third party rents one of the
properties. There is not a set tax benefit for homeowners.
The amount of money credited depends on a number of
different factors. Many of them are actually the same
things that affect standard tax returns like filing
status, job expenses, and charitable donations.
Using a “Calculator” to Determine the Tax Benefits
of Owning a Home
There are computer programs that allow people to figure
out what kind of benefits they can expect to receive
for owning their homes. A person enters information
pertaining to the location of his house, its property
value, and when it was purchased. He must also enter
the amount of the loan he has taken out on the home,
the interest rate of that loan, and the length of the
loan term. When all of this, and some other basic tax
information, has been entered, the simple click of a
button will give an estimate on the tax benefit.
"So, what kinds of benefits can I expect?"
People often expect the benefit to be far greater than
the result they get. For example, a married person,
living in a $200,000 home in Texas, who has a 30-year
loan of $150,000, stands to get a benefit of about $190.
This amount will, of course, be higher in some areas
and lower in others. However, the average homeowner,
after entering his information, should not expect the
tax calculator to generate an enormous sum.
If you liked this article on the tax benefits of home
ownership then you will like the following ways to save
on taxes and to get the lowest rate possible on your
credit cards or home loans: