Top Tax Breaks On Owning Property #2
June 5, 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.
Home Improvement Loan Interest: The interest on a home improvement loan is also deductible, but calculated differently. You can deduct all the interest on a home improvement loan provided the work is a “capital improvement: rather than repairs, maintenance or cosmetic upgrades. Capital improvements typically increase your home’s value (i.e. you added another room), you prolong it’s life (i.e. a new roof) or adapt it to new uses (i.e. universal design improvements to assist older people or people with disabilities). You get tax benefits from repair work (i.e. painting, repairing, etc.) only when you sell your home but you can use a home equity loan to make repairs and deduct the interest, up to the limits.
*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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