If you are not a homeowner and you are currently considering between buying a house or renting one, maybe learning that you can get property tax deductions if you own a house will help you to make up your mind.
Many people are skeptical when it comes to investing in real estate because of the numerous stories they have heard of owners being driven out of their house as a result of foreclosures. This seems to be especially risky in a period of high unemployment and poor economy. However, you should also consider the other side of the coin. All the costs that you have to have in association with your property are tax deductible.
When you are investing in a new home, there are many upfront payments which you have to pay, for instance, title fees, mortgage fees, recording fees, home owner insurance and appraisals fees, etc. This may look like a lot of payments but you will be happy to note that these fees are tax deductible, so come April your check to Uncle Sam will not be a fat one.
Interest on Mortgage Loan
In case you are not aware, when you take up a mortgage loan with the bank, you will have to pay monthly interest which can be relatively high. The good news is that can qualify for property tax deductions too.
The above are only two examples of what you can include under
save the 1031
tax deductions. Other deductible fees include insurance, real estate, property management fees, accounting costs, depreciation, etc. There, you have a whole long list of tax deductible fees which can help you to reduce the size of your check to the Tax Man. On top of that, you have a house to call your own.
Tax Tips to Help You Save
While this is not only legally questionable, it can also make the individual lose money in the long run, which nobody enjoys to be sure. What you must do then is learn which places to look to, and how to apply certain tax tips to maximize your deductions.
You can work with a tax advisor to identify areas where you may be eligible for