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Tax benefit for buying a  house 

9/6/2015

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Irrespective  of  whether  you  own  a  mobile  home, co-op   apartment  or a single-family home,
you certainly qualify for a tax benefit. There are many tax breaks or tax benefits which are  available to homeowners. However, to take full advantage of these credits and deductions you need to initially itemize all your taxes. Some of the tax benefits you are entitled to include mortgage interest deduction, deduction of points, exclusion of sales gains, and deduction of property, etc.
Considerable Tax Benefits

As a homeowner living in Queens NY, you are entitled to a tax benefit [in the form of mortgage interest deductions] on a loan secured for  your  primary  or second home, regardless of whether your second home is an RV or a boat with bathroom, sleeping, and cooking amenities. You  can  deduct home mortgage interests  in most  cases, but how  much  you deduct depends on how you use  mortgage proceeds, the amount of the mortgage, and when you took out the mortgage.


If you obtained your home mortgage by paying mortgage points in order to buy a home, those points can effectively be deducted when you  include  them  on  the income  tax  deductions  list. These mortgage points are still deductible even if you decide to refinance your home.In order for the mortgage points to be deducted as a tax benefit, you need to refinance your home over the life of the mortgage. Another considerable tax break is the exclusion on sales gains.

If, as a homeowner, you used your home as your personal residence for more than two of the past five years, you qualify for ‘exclusion on sales gain’ benefits when you sell your house. The sales gain tax benefit differs depending on whether you lived as a couple or  as an individual. It however gets harder to have your sales  gains  excluded if you once lived in the house, moved out, and later moved in again. Although you might qualify partial exclusion, chances are slim.

Additional Tax Breaks

Based on the assessed value of the property, you can aptly deduct your state and local property taxes. You will however need to know the precise amount of money you paid, especially if you pay your property taxes out-of-pocket, in order  to qualify for this  tax  benefit.  You cannot claim this tax deduction if you have not paid property taxes,or if your money is being held in Escrow for the sole purpose of paying. If you do claim, the amount you get will be significantly reduced.


You are also equally entitled for an energy-saving tax benefit of up 30% if you installed a solar energy system, small wind turbine or a geothermal heat pump in your home. Thirty percent of the total cost of installation is what you can claim.
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