Pride of ownership is a key reason for wanting your own home. Decorate it to your own taste and enjoy all of the benefits while making an investment.
Real estate over time has been considered a good investment because most of it has appreciated. The effects of leverage can multiply the increase when borrowed funds are use to purchase the home.
Qualified mortgage interest and home equity loans are deductible for income tax purposes.
Property taxes on a first or second home are deductible for income tax purposes.
A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately for homes that have been the taxpayers principal residence for the previous two years. There is not an age requirement for taking the capital gains exclusion like the "over 55" rule in the past.
Preferential tax treatment on gains that have been made from capital assets held more than one year is permitted by the IRS. This is especially important for homeowners with gains in excess of the allowable exclusion.
Mortgage payments include the interest for the time that the money has been used and principal to retire the debt over a period of time. Each month of the payment is for principal accumulation.
Website is a service of Lynne Creasy ABR, CRS, GRI, REALTOR® • Mark A. Dalton & Co, Inc. Realtors 504 Wyndhurst Dr. Ste B • Lynchburg, VA 24502 | 434-401-1394