Tax Benefits of Home Ownership

Purchasing a home is the most important and probably the largest purchase for most families. Home buying decisions are influenced by different factors. One of them is the available tax benefits which help offset part of the cost of investment. Homeowners are entitled to three major tax benefits which, taken together, substantially reduces the cost of homeownership. These are:
Mortgage interest which is deductible

Real estate taxes which are deductible

Capital gains tax which is excluded for principal residences

From these estimates it clearly evolves that the deduction of mortgage interest is usually the single largest benefit to most homebuyers. Tax code provisions allow homeowners a reduction of taxable income by the total amount of mortgage interest paid annually on the first and second home up to $ 1 million in total home mortgage debt. Taxpayers may also deduct the interest allocable on home equity loans up to a ceiling of $100,000. These are some of the major tax benefits of home ownership.

Homes in the Bay Area

Prospective home buyers interested in a home in San Jose or the surrounding communities are advised to contact Dale Warfel at 408.624.6202. This realtor has been buying and selling Bay Area real estate since 1997. In addition, he is conversant with the entire slew of tax benefits that are available to a home buyer. Dale Warfel is native to Saratoga and specializes in properties in Santa Clara County. His website http://www.dalewarfel.com/ has a fund of guides for prospective home buyers.