Homeowner Tax Breaks – There are several breaks when it comes to taxes for the homeowner. In addition, there are incentives to write-off when installing energy-efficient upgrades. The entire interest that a person pays on their mortgage can also be a deduction.
There are property tax deductions, which means the annual bill you pay each year to the county is also a write-off.
Have you heard about the second home deductions? The IRS is trying to stop this loophole but most members in Congress wants to keep it as law. Basically, if you own another property that is considered rental, then you can take advantage of some great incentives for home repairs.
Some people were using this law to write off repairs to their primary residence. You can deduct some of your repairs if you own a business in the home. The IRS will allow a certain percentage to be used for your business.
There were a few homeowner breaks in 2008 that provided stimulus funds to first time buyers. However, that is gone, but there’s good news! Have you seen some of the rock bottom prices for homes these days?
I just purchased a nice home a couple months ago. It was appraised in 2008 for $500,000 and the seller wanted $491,000. I was able to negotiate a price of $350,000 and it’s now my residence.
Some homes that were $230,000 about two years ago are now selling for $60,000 to $80,000 in different parts around the country. You don’t always need a stimulus or tax deductions to help you buy property. However, those breaks do come in handy comes time to pay the IRS.