Ah, February 14th - Valentine’s Day. Each year, I have the feeling there is a little more in the air than benevolent pure love.
This ‘other' feeling isn't coming from the warm caring feelings of one near and dear with the aid of Cupid's bow. Instead it arrives with the specter of Tax Forms from our not so ambivalent Internal Revenue Service.
Each year we Americans appear to pay our government more in taxes and come away with less showing from it at the personal level, and each year we attempt to seek out just one more deduction to soften the barb.
It is at this time we realize how much we cherish owning our homes and other real estate holdings as real lifesavers in taxes. Mortgage interest is still very much deductible as are property taxes. If you own rental property, you may not only deduct these items, but depreciation, insurance and repairs as well.
If you are holding a large equity in your present home, chances are your deduction for mortgage interest is very low or virtually non-existent. Have you ever considered re-financing your home in order to pull out equity to buy an investment property; or perhaps you've wondered about selling and purchasing a more upscale home? Chances are either of these moves would dramatically improve your tax situation.
If you are considering purchasing an investment property, or if a larger home is in your dream for the future, please contact me. I look forward to hearing from you!