Top Tax Breaks On Owning Property #1
June 4, 2007
There’s no place like home to find shelter. Home ownership offers a score of tax deductions and credits designed to help offset the cost of housing and to keep the housing market fueled with new buyers. Here’s a look at the Top Tax Breaks.
Mortgage Loan Interest: The mother of all tax breaks, because interest payments comprise a large portion of your mortgage payment in the early years of the loan’s term, mortgage interest on a maximum of $1 million in mortgage debt secured by a first and second home is deductible. Deductions reduce your taxable income against which your taxes are due are calculated. The $1 million level applies to joint tax filers. You get half the deduction if you file as a single or separately.
Likewise, home equity loan interest is deductible, but limited to the smaller of $100,000 (half as much for ach member of a married couple if they file separately), or the total of your home’s fair market value as determined by a complicated formula you may need a tax professional’s help to decipher.
*Everyone’s tax situation is different, visit the Internal Revenue Service’s site for more details or contact your CPA or tax preparer to verify that this applies to you.
Posted in All Things San Diego, Helpful Hints, Lending, Real Estate, Taxes, Things of Interest
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