Owning your own home is, for many, the symbol of the American Dream. A place of your own, safe and secure for your family and your future. Aside from the personal, there are also sound, financial reasons for wanting to purchase a home. A house is the single, largest investment most of us will make in our lifetime, and it comes with a host of tax advantages and deductions a qualified CPA can help you make the most of.
Your principal residence is the place where you legally reside, and many of the tax benefits associated with home ownership apply mainly to that principal residence. One of the most important tax advantages of home ownership is the deduction of mortgage interest, whether that mortgage was to buy, build or improve your home, and this applies to both principle and secondary residences. There are other allowed deductions as well, like the points and some closing costs on your loan, and real estate taxes. Aside from deductions, you need to know about the tax ramifications of other actions you may take regarding your home, like how certain improvements will effect the tax basis of your property, or how to exclude from taxation all or part of the capital gain you receive when you sell your home at a profit.
Bottom line: there are many tax related questions that arise during home ownership, and it is important to find a CPA capable of determining your most favorable position. Let the experts in the office of Deborah J Kent help you achieve the best return on your real estate investment.