Atlanta Home Buyers – Buying a Home has Tax Benefits
The United States IRS allows you to deduct mortgage interest on your home for the year the interest is paid. So if you have an amortized loan, an ARM or even and interest only loan the good news is that each month’s payment usually has interest paid as part of each monthly loan payment. At the end of the year, you will usually receive a statement from your lender showing you how much interest was paid on your mortgage loan for that year for tax purposes both Federal and state. This is a very substantial subsidy of home ownership.
Also, if you’ve owned and occupied this home as your principal residence for at least two of the past five years you can sell the home and keep up to $500,000 profit on the sale of that home and pay no federal income tax if you are married – and if you are single you are allowed up to $250,000 tax free. This is allowed every 2 years.
There are many advantages for homeownership, and for more information speak to your tax accountant, tax advisor, or contact us about buying a home.
