Forbes Magazine recently wrote that "Home ownership enhances the longing for self-determination at the heart of the American Dream." Not only do most Americans long to own their own property, but the federal government encourages home ownership by giving tax breaks on certain expenses associated with purchasing and owning a home.
With Tax Season nearing, here are a couple of points to remember if you own your home:
All mortgage interest is deductible if you itemize your tax returns. This means you can subtract mortgage interest from your gross, or pre-tax, income. The vast majority of Americans will be able to deduct all of their mortgage interest expenses.
Property taxes are also deductible up to $5,000 for individuals and $10,000 for married couples filing jointly.
The federal government has created these deductions to encourage families to own their own piece of America. Over time the tax laws have changed, but they have always been pro-homeownership. As always, speak with your tax professional to see how to favorably use these deductions.
If you have any questions about mortgage rates, qualifying for a home mortgage, or refinancing please don’t hesitate to reach out.