Ok, think fast, which came first, the chicken or the egg? I’m not sure either, but I know it is an age old question that will be debated well after we are all long gone. Another question that has been debated almost as long in Rockville and around the country is should I buy or rent? As with the chicken question, there are pros and cons on each side of the equation, and further debate will not make much difference. What might make the difference is some information on the numerous tax deductions and credits that you can take, if you are a homeowner.
Turbo Tax and many other tax filing agencies have a list of these tax benefits for homeowners that itemize their deductions. Some of these are:
Mortgage Interest – Deduct interest on up to $1 million of debt.
Points – What you paid your lender to get the mortgage you can deduct, as long as you paid an equal amount as a down payment.
Real Estate Taxes – Or property taxes, that you have paid over the year.
Private Mortgage Insurance Premiums (PMI) – If you paid less than 20% down, then the lender usually requires the homeowner to pay an insurance premium that protects the lender if the borrower fails to repay the loan. If you purchased your home in 2007 or later, these premiums are tax deductable.
This is a short list of deductions, and if you would like to discuss all the tax incentives that homeowners are given, my old friend Mark Tootsey, CPA, is the man to talk to. Mark can give you the correct tax information, advise you on any tax options you have, and even prepare your taxes. Contact him by phone at 240-744-4048, email at MTootsey@CramerandOler.com , or visit his Website. Mark may even have some ideas about that chicken or egg question, you never know. If not, I am sure he can give you good information and help you make that buy or rent decision.
For more real estate information to help you make the buy decision, contact me, Kevin Grolig, at 240-793-7495 today if you have questions, or would like a no hassle, no obligation market evaluation of your house. I am also available if you need guidance on home buying.
If you would prefer, my website has a ton of information. You can find Mark and a list of other local folks who are ready to help with everything from staging your home to root canals on my preferred vendors’ page. You can sign up for a FREE monthly report on the sales trends and statistics for your community, search the entire MLS database, or just click on the area you are interested in: Bethesda, North Potomac, Gaithersburg, Germantown, Boyds, Clarksburg, or Montgomery County. Either way, I am always here to serve!
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