Tax Tips For Home Buyers

  Taxes play a big role in buying a house, but you may be playing the right game with wrong house. Let me explain. You’re a renter. You rent every month for a “unit” you don’t own. At the end of the year, you cannot claim your rent on your taxes as an expense unless there is a business involved and we won’t get into that right now. That is a monthly bill you cannot do anything with but pay. Now, if you buy a house, you have the option to deduct mortgage interest and property taxes off your tax return and save some money every year. The interest on some lines of credit qualifies, also. Investors that own rental property can also deduct a percent of the purchase price every year. This gives you a chance to save money on a monthly payment most people have to pay anyway. At least this way you get some of that money back at the end of the year on your taxes. Now let’s go to the next level. Your home plays a big role in your taxes every year. Although you do get a pretty healthy deduction on your house interest and property tax, it may not be your best interest to use that as an excuse to keep a mortgage on your home. I have heard many people tell...