San Antonio, TX (PRWEB) April 03, 2013
There are many benefits to owning a home. Among them are the many home ownership tax deductions. As tax payers begin filing returns for April 15, Alamo Home Source believes that homeowners have some major tax benefits as the result of owning a home.
Alamo Home Source, providing quality homes to families of San Antonio, says that the tax benefits of homeownership are almost too good to be true. There are some common deductions homeowners can take advantage of before April 15. Homeowners can deduct points (a percentage of the loan amount) used to get a mortgage when buying a home. Points are deductable when buying a home in the year they are paid, providing they meet certain restrictions. Sometimes the home buyer negotiates for the seller to pay some closing costs, including points. If the seller pays the buyer’s points, the IRS will allow the buyer to deduct them as an expense on a federal tax return. The homeowner gets the benefit, even if the seller paid the closing costs.
The IRS also says that homeowners can deduct interest in the year the home is paid and that is usually part of each monthly loan payment. In general, homeowners can deduct interest charged on a loan used to acquire or improve their residence in the year it is paid. In the early years of the loan, most of the monthly payment is interest, so this can really add up. For some homeowners, this can lower borrowing costs by almost a third.
In addition, homeowners can use a “Home Equity Loan” exception to deduct interest on an additional $100,000 of mortgage debt, which can be used for any purpose. This gives homeowners the ability to do what’s called “debt-shifting” to make interest expenses on personal debt automatically deductable. Homeowners can also deduct pre-paid interest and pro-rated property taxes. This is done by closing on any day other than the first of the month, pre-paying interest for the remaining days in the month. The same situation applies to property taxes.
Those who have owned and occupied a home for at least two years can earn up to $500,000 on the sale of that house and pay no federal income tax whatsoever. Homeowners can do this as often as every two years for the rest of their lives. The profit from selling a home can be pocketed and free from taxation.
Buying a home in Texas offers many more benefits than simply having a place to live. The profits of buying a home can substantially affect federal income taxes. These benefits can save homeowners plenty of money on taxes and put smiles on their faces when their tax return arrives.
Alamo Home Source is not a Tax Accountant. Please consult a professional Tax Accountant for laws regarding Taxes etc.
<br>About the company:<br>
For those looking to buy a home, but have no credit, bad credit, filed for bankruptcy, or are a first-time home buyer, Alamo Home Source has the perfect home loan solution. At Alamo Home Source, they know it can be difficult to obtain mortgage loans with traditional lenders. With in-house financing, homeowners are given viable options to take advantage of loan options tailored to fit their needs. Alamo Home Source’s specialists work with homeowners on a personalized level for the right interest, the right payment amount, and terms that both parties can agree upon. With a variety of home loan options, they carry home loan options for every person and every unique situation. Alamo Home Source has helped many customers who are now homeowners. Contact their office today at 210-607-9779 and let them turn homeownership into a reality. Se Habla Español and accept passports as valid form of I.D.