The internal debate of whether or not to own a home as opposed to continue to rent a home brings many questions about owning a home to the surface. Along with the cost and responsibility of owning a home comes the tax benefits and write-offs that can come with home ownership.

Mortgage interest is one positive of buying a home. The mortgage interest paid each year can be written off at tax time. Property taxes are also deductible from federal and state income taxes.

If you decide to sell your home you can deduct any home improvement or renovation costs, which in a round-about way makes improving your home a tax deduction, albeit a time-delayed tax deduction.

There are other benefits that come with hard times as well. If you rent a home chances are you are out of luck should a natural disaster strike. If you own a home the damage and losses incurred from a tornado, for example, can be written off come tax time.

Home ownership has many benefits. Today’s real estate market offers low mortgage rates and home values, as well as a variety of different tax incentives to take advantage of.

Click here to read an article from Smart Money about tax breaks that come with home ownership.

Contributed by Mario Romero, CRS, CDPE, CLHMS
602-252-4191 office, 602-254-9810 fax
The Romero Team - Melcher Agency
www.TheRomeroTeam.com
www.ShortSaleTeamAz.com
Follow Me on Twitter

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.