Real Estate Tax Deductions
Everybody loves a piece of land. That is the real limited resource we have on earth. And the government allows us some deductions on real estate also. Some of these include:
1. Interest paid on mortgage: permissible unto a maximum if you have bought your first and second homes within $1.1 million.
2. Fee points: completely deductible points, these are arrived at when you have taken mortgages. One point converts to 1% of the original amount and this is literally thousands of dollars and completely deductible.
3. Equity loan interest: certain rules imposed by Internal Revenue Service, but partially deductible as it are loan on your home credit.
4. Home improvement loan interest: interest on making improvements but remember, there is a slight difference between a repair and an improvement.
5. Home office deduction: if your home doubles up as your office too, then this is the deduction to take.
6. Selling Costs: these are costs that you normally include like legal costs, transfer costs, advertising and admin costs and so on.
7. Capital gains exclusion: is a house which you resided for two years in the past five years, you need not pay any capital gains tax. Married taxpayers can get a maximum limit of $500000 and $425000 if filed individually.
8. Home moving costs: this is an option available to ones who are relocating. If you are moving to any other part of the state or country, claim it.
9. Property Tax: Finally, the real estate tax (property tax) that you pay to your local government is completely deductible from your federal income tax. So you see, taxes are not really that bad, if you plan and make the most of it. Just keep those ears and eyes open and make a small payment to those smart tax consultants.
The author, Roy White, and his wife, Shirley, have been helping people buy and sell Las Vegas real estate for over 28 years. They are also investors themselves. If you have any questions or comments please call Roy and Shirley toll free at 1-866-374-3444 or e-mail them at CENTURY21WHITE@aol.com
Site Map Site Map Page 2 Site Map Page 3 Site Map Page 4 Site Map Page 5
The Roy and Shirley White Team
CENTURY 21 Aadvantage Gold
5041 N Rainbow Blvd
Las Vegas, NV 89130
Direct Line 702-610-4270
Toll Free 1-866-374-3444
Fax Line 702-309-4483
Each office is independently owned and operated
