Guest Post: Tax Benefits of Home Ownership

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Even with occasional dips in the housing market, there are a variety of advantages to home ownership. While not every homeowner may end up making a bundle of cash on his or her home through price appreciation, there are ways in which you may increase the odds of making your property investment profitable. There are numerous benefits to owning a home, including various tax benefits that you might be able to take advantage of during your time as a homeowner.

Mortgage Interest Deduction

Being able to deduct mortgage interest on your federal income taxes is probably one of the most widely recognized tax benefits to owning a home. This advantage can be especially valuable to those who have taken on a mortgage without much of a down-payment or who are early into the term of a mortgage and paying much more on interest than principal. Unless a homeowner refinances a mortgage, this benefit will gradually fade with time as more of the mortgage payment begins to be applied toward principal than interest.

Property Tax Deduction

Taking advantage of the property tax deduction upon your personal income taxes is another tax advantage of home ownership. Like mortgage interest, the amount you pay in property taxes may be deducted from your federal income taxes each year. Between interest and property taxes a homeowner could end up easily realizing thousands of dollars per year in deductions.

Property Tax Exemptions

A homeowner might be eligible for certain exemptions upon their property tax bill, which could be another beneficial aspect of homeownership. Some exemptions that might be available to a homeowner could include senior, military, disabled veteran, and the standard homeowner exemption. It’s important to check with a county’s tax assessor’s office to see what types of exemptions are offered in a particular area and what restrictions or requirements might apply.

Energy Efficient Modifications

Certain energy efficient modifications to a home could be eligible for federal income tax credits. Items such as windows, doors, HVAC units, roofs, solar energy systems, geothermal heat pumps, and similar items installed within your home might qualify for these tax benefits and could increase the value of the home itself as well. Visit http://www.energystar.gov/ to learn more about these possible tax benefits of home ownership.

Consider asking neighbors and community officials about other possible tax benefits in your area as well. Federal, state, and local tax laws change regularly and missing out on such opportunities can be costly.

Anastacio Mindiola is an accomplished attorney and business owner. His company helps home and business owners protest property taxes in Houston and the surrounding counties. For more information on how you can lower your property taxes visit http://www.republicpropertytax.com.

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