tax benefits of buying a home

there is more to be gained from buying a new home in tooele than just appreciation. I'm not a tax man and can't give tax advise but here are a few tips to go over with your accountant.

typical tax deductions for owning a home in tooele ut

there may be several typical tax deductions for owning a home. deductions reduce your taxable income and therefore result in fewer taxes owed. it is important to understand the tax implications prior to buying a property or when comparing renting vs. buying. this blog post includes details on typical tax deductions for owning a home in tooele ut.

tax deduction criteria

not everybody is eligible for typical tax deductions for owning a home in tooele ut. when preparing taxes, you can apply the standard deduction or itemize your deductions, whichever results in lower taxes. if you own an inexpensive home, the deductible costs may not add up to more than the standard deduction. other personal variables can affect this as well. a tax adviser will offer a true understanding of the tax advantages of buying a home by reviewing your specific situation.

usable property-related costs

interest payments

only the interest portion of your home loan payments are tax deductible. in the first few years of owning a property, you pay more towards interest than principal. thus, the amount of deductible interest is much higher in that time frame. your loan provider will mail you a tax form every year totaling the mortgage interest paid.

municipal taxes

real estate property taxes can also be tax deductible. real estate taxes are an annual charge but are often invoiced in quarterly amounts. these taxes can be included in your mortgage monthly payment, but retain copies of the tax statements sent to you. the figure in the statement by your mortgage company are sometimes not accurate, particularly if you closed on the home during the year.

lenders mortgage insurance

if you bought your home within a certain time frame and if you are part of a specified income bracket, you might be able to deduct mortgage insurance payments. mi is typically invoiced at closing and on each mortgage payment for mortgages higher than 80% of the selling price and until the loan amount s below the 78% level.

points and other expenses

be sure to keep a record of your settlement statement. certain charges such as points, real estate taxes, and pre-paid interest could be used. provide the paperwork to your accountant.

typical tax deductions for owning a home in tooele ut

the above typical tax deductions for owning a home in tooele ut addresses primary homes. if you purchased investment property, the list of deductions vary. this is shared only as a generic introduction. be sure to consult with a tax professional for solid guidance applicable to your financial situation.

for any other questions about tooele real estate, give us a call chris or berna 435-840-5029.