It's National Homeownership Month ~ Reason #8 To Own Your Own Home

By
Real Estate Agent with Coldwell Banker Realty

 

 

It's National Homeownership Month in June and here's Reason #8 why you should own your own home:

 

 

OWNING A HOME PROVIDES TAX BENEFITS YOU DON'T GET WHEN RENTING

 

Reason #8 to own your own home

 

Owning your own home provides a number of tax benefits that you don't get when renting. And who doesn't want to save on taxes?  Some of the tax benefits you get when owning your own home include:

 

  • Mortgage Interest: the interest you pay on your mortgage is tax deductible. And in the early years of a mortgage most of the payment you make is interest.

  • Home Equity Line: If you have a home equity line of credit (HELOC) that you use from time to time, interest paid on that loan is also tax deductible.

  • Points: if you paid points for your mortgage, they are typically tax deductible in the year they were paid.

  • Property Taxes: you can deduct property taxes on your income tax returns.

  • Tax-Free Profit on Sale of Home: the first $250,000 of profit on the sale of your home is tax free if you are single and the first $500,000 of profit is tax free for married couples.

  • Home Office: if you work primarily from home, tax benefits for the portion of the home you use for business will apply.

  • Home Improvements: while home improvements, per se, are not tax deductible, if you borrow to make improvements or additions to your home, the type of loan you incur can also provide deductions for interest paid on the loan.

  • Penalty-Free IRA Withdrawal: if you're a first-time buyer or even a second-time buyer, who has owned a home for at least two years, you can withdraw up to $10,000 from your 401K plan towards the purchase or construction of a home without paying the 10% early withdrawal penalty on the money.

  • Lower Witholding Taxes: No need to wait until the end of the year to collect your tax savings from owning a home. You can adjust the amount of your W4 witholding and start "collecting" on the tax benefits with each paycheck.

 

 

As always, it's important to check with your personal accountant to make certain what tax benefits will apply to you specifically when you purchase, own, or sell a home. And you can find more information about tax deductions for homeowners here.

 

  

If you are a renter, who would like to make the transition from renter to homeowner, contact Nina Hollander/Carolinas Realty Partners with Coldwell Banker Residential Brokerage.

We can help you turn your rent payments into mortgage payments!

 

SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

If you are considering purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that:

 "The Right Broker Makes All The Difference."

 

 

 

Related Articles On National Homeownership Month:

 

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SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

 

 

 

Nina Hollander

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From Charlotte/Ballantyne/Waxhaw/Fort Mill
Search For All Charlotte Area Homes: www.GreatHomesInCharlotte.com 

Charlotte Magazine 5-Star Customer Satisfaction Award Winner Since 2007

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Kathy Streib ~ thanks, Kathy! Two more to go before end of the month to finish it up.

Jun 20, 2015 05:22 AM #16
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Joan Cox ~ renting provides no tax benefit whatsover, Joan--except to the landlord.

Jun 20, 2015 05:23 AM #17
Rainmaker
2,706,701
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Nina,

Use it before we lose it - the tax benefits are a great reason to own a home!

Jun 20, 2015 08:22 AM #18
Ambassador
2,202,301
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

This is a great series you're doing, Nina. Keep up the good work. Consumers will find this information very useful even if they already own a home. 

Jun 20, 2015 09:10 AM #19
Ambassador
3,981,263
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina your National Homeownership Month series has been packed with information.  Great job!!!

Jun 20, 2015 09:23 AM #20
Ambassador
3,985,078
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I have enjoyed your series and this post particularly has all the things I let buyers know about. Great job, Nina.

Jun 20, 2015 01:30 PM #21
Rainmaker
1,679,921
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Nina Hollander , What a great series, for home ownership month.  Have a great weekend.

Jun 20, 2015 01:32 PM #22
Rainmaker
1,266,823
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Nina Hollander 

 

Another great post. Home ownership is incredible and it really pays off over time. 

Jun 20, 2015 01:38 PM #23
Rainmaker
3,164,530
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Nina. I do like the tax break we get for owing our home.  I just wonder from time to time when the Feds will figure out a way to do away with that break.  

Jun 20, 2015 08:25 PM #24
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning to you, James Dray ~ I think getting rid of the home tax breaks is such a political hot potato, they don't want to touch it, unless we go to some super simplified tax system where all deductions go away. And I don't see that happening any time soon.

Jun 20, 2015 08:43 PM #25
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

George Sotuo ~ thanks so much for the compliment. I'm glad people are finding this useful. Happy Father's and Grandfather's Day to you!

Jun 20, 2015 08:43 PM #26
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Alan Kirkpatrick ~ home ownership truly is the American Dream. Americans don't realize how much people in other parts of the world would love to have a piece of the particular dream.

Jun 20, 2015 08:44 PM #27
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Larry Johnston ~ thanks, Larry, so much for the great compliment. I really appreciate it.

Jun 20, 2015 08:45 PM #28
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Debbie Reynolds ~ thanks, Debbie, for the compliment and happy you are enjoying the series.

Jun 20, 2015 08:46 PM #29
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Debbie Laity ~ thanks much, Debbie, for the compliment and encouraging words. It's nice to think that the time I've spent on this is of value.

Jun 20, 2015 08:47 PM #30
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Lisa Von Domek ~ it's amazing how many people really don't ever think about the tax advantages of home ownership and their impact on their bottom lines.

Jun 20, 2015 08:48 PM #31
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Nina.  I use the tax benefits to show their actual net payment of their new home.

Jun 20, 2015 09:24 PM #32
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Conrad Allen ~ that's a great thing to do Conrad, as so many people don't know how.

Jun 20, 2015 09:30 PM #33
Rainmaker
3,330,223
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Our buyers ust have read your blog...they are coming from everywehre !

Jun 21, 2015 10:31 PM #34
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Sally K. & David L. Hanson ~ what can I say? Happy my post is working for you!

Jun 21, 2015 10:35 PM #35
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