Homeownership Advantages Rent vs. Own - Consult your accountant
The benefits of homeownership are always at the forefront of my mind. It’s my passion, that’s why I became a REALTOR®. Educating people about homeownership is an integral part of my business. The debate to: rent vs. own housing, I believe it is an individual decision. No matter what your financial position is the investment in an accountant's time is good one with regard to this major life decision.
What do you call an accountant with an opinion? An auditor.
An accountant is someone who solves a problem you didn’t know you had in a way you don’t understand.
What do accountants suffer from that ordinary people don’t? Depreciation
Where do homeless accounts live? In a tax shelter!
Accountants are often the butt of jokes, like lawyers, and REALTORS® people don’t always see their tremendous value because they appear, on the surface, to be expensive and you can “do it yourself” right? There are turbo speed programs to walk you through your tax returns what else could you possibly need these over paid professionals for?
Well, because they can save you money. I’m not an accountant. I can not give you tax advice I can share what I have learned. I use one for my tax returns and I don’t believe I’m getting 100% of my money’s worth. I don’t blame the accountant. I blame myself. I learned years ago at a tax seminar put on by Sandy Botkin, C.P.A., Esq. accountants are only tools, we need to learn how to use them.
Homeownership is NOT for everyone. The decision should be made based on the individual's needs wants and reality or financial ability. It is important for first time buyers and repeat buyers to compare the after-tax mortgage payment with the current rent obligation or monthly payment to generate an accurate comparison. It is also important to note, the long term tax advantages of homeownership may reduce the initially higher cost of a home when compared with renting a lower-cost home or apartment. There are tax deductions available to homeowners that are not available to renters. The benefit is in the long term and record keeping of your home that a qualified CPA can assist and advise you about.
7 Questions to ask your accountant:
Ask your accountant for a detailed own vs. rent comparison. Have them explain the financial pros and cons.
Can you deduct mortgage interest?
Can you deduct points paid on the mortgage?
Can you deduct home improvements?
Can you deduct a home office?
What settlement expenses are tax deductible?
Can a homeowner reduce withholding taxes?
Use your accountant as a tool to benefit you and your financial goals. That’s what you are paying them for. Once you have made an informed decision, give me a call at 443.286.4365 and we can discuss your next steps in the home buying process. I look forward to talking with you soon!
Homeownership Advantages Rent vs. Own - Consult your accountant
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