For starters, real estate tax relief; The government finds a multitude of ways to make a new home purchase a huge tax benefit to you.
Tax Advantage: Property taxes are fully deductible. Your mortgage is a significant tax relief. All mortgage interest up to a maximum of $1 million may be deducted from taxes. If you're married taxpayers filing jointly, earning $500,000.
Interest Advantage: Your interest on the total debt of equity is limited to the smaller of $100,000 ($50,000 for every member of a married couple, when filing separately), or the aggregate fair market value of your home.
Points Advantage: You can deduct all points on a mortgage purchase of a home. One point equals 1% of the loan principal. One to three points are common on home loans; which can ultimately run into the thousands of dollars. Points are also a refinanced deductible, provided the points are amortized over the term of the loan.
Refinancing Advantage: Taking out a home equity loan to make substantial home improvements lets you deduct the interest on the loan. There is no limit for this deduction. Work must improve the value of your home; i.e., a new addition such as an extra bonus room or swimming pool, not just minor cosmetic improvements such as painting, fixing broken windows or wallpapering.
The Internal Revenue Service publishes a number of real estate publications. They are listed by number:
* 521 "Moving Expenses"
* 523 "Selling Your Home"
* 527 "Residential Rental Property"
* 534 "Depreciation"
* 541 "Tax Information on Partnerships"
* 551 "Basis of Assets"
* 555 "Federal Tax Information on Community Property"
* 561 "Determining the Value of Donated Property"
* 590 "Individual Retirement Arrangements"
* 908 "Bankruptcy and Other Debt Cancellation"
* 936 "Home Mortgage Interest Deduction"
These publications are available for free online or by calling (800) TAX-FORM.
There are also many tax deductions and benefits after the initial purchase of your home, using one of the rooms as your home office/business, capital gains, sale, improvement of property, travel and other tax advantages.
Consult with a tax professional to learn more about your specific tax situation. As a homeowner, there are many tax benefits that may be granted to you.
Nevada's tax environment (including no personal income tax) is regarded as one of the most-business friendly environments in the nation
Contact - Call 702-677-8796 Today!
Oh, by the way, if you have any friends or family who are thinking of making a move and would benefit from our service, I would love to talk to them. Just give us a call at 702-677-8796 with their name and number and we would be happy to follow up and take excellent care of them.
Linda Strasberg, Las Vegas Homes Sales & Real Estate Marketing Specialist
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