Oh Valentine’s Day. Why is it each year folks have the feeling there is a little more than benevolent pure love in the air?
I suspect it’s because that ‘other' feeling isn't originating from warm caring feelings of one near and dear, and transported from Cupid's bow. But instead, is arriving with the specter of Tax Forms from our not so ambivalent Internal Revenue Service.
Recent tax changes have benefitted some, but wounded others. Much depends on whether the increased personal exemption makes it less beneficial for you to itemize. Each year 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 ways to soften the barb!
It is during this time many realize how much we cherish owning our homes and other real estate holdings as real lifesavers in taxes. While there are certain limits, 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 could dramatically improve your tax situation. The recent changes to tax law may find you benefitting from conversation with your tax professional to determine what investment moves may benefit you!
Happy Valentine's Day Homeowners
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