Laguna Beach Home Ownership Tax Benefits
Some people are hesitant to purchase a home of their own, especially when it comes to homes located in upscale areas such as Laguna Beach. The reasoning of uninformed individuals is the mortgage of homes in such prime real estate areas is too expensive and renting out an apartment is more practical. However, if you will talk with a property and real estate expert, you would be surprised to learn that they highly encourage people to purchase homes in posh areas such as Laguna Beach. Why? It is because there are many perks that families enjoy when they purchase such homes even through taking a mortgage. For instance, the mortgage interest is tax deductible and, therefore, frees you from any other real estate tax obligations. To know more about the advantages of purchasing a Laguna Beach home in terms of tax benefits, read on:
Tax-Deductible Mortgage Interest
Did you know that if you take up a home in any upscale community in the United States, you can enjoy a tax deductible mortgage interest of up to $1 Million? Any home that is purchased by an individual or family as an investment is entitled to this provision. Therefore, you need not worry about paying extra when it comes to real estate taxes. You only need to be updated with your mortgage payments, be able to complete payment, and you can enjoy this amazing benefit brought to you by the U.S. Congress.
Numerous Temporary Deductions
Aside from the tax-deductible mortgage interest, the U.S. Congress is also encouraging its citizens to acquire homes by offering numerous deduction options. For instance, if you are a first-time buyer, you can now enjoy an $8,000 tax credit which you do not have to repay unless you sell the home you acquired in the first three years. MI premiums can also be reduced, depending on your income limits (it is best to ask a tax specialist to know more about this). Also, people who pay property taxes, even if their deductions are not itemized, can get up to $500-1000 extra deductions, depending on whether it was filed by a bachelor or joint estate (married couple).
Other Tax-related Incentives
You will also encounter minimal inconvenience if you decide to sell the primary residence you acquired. Did you know that you can make $250,000-500,000 in profits without owing any capital gains taxes? This is the government's way of encouraging people to purchase real estate as they maneuver real estate to become a very liquid asset.
There are many other tax benefits enjoyed by home owners that were not listed above. However, those that were cited are surely good enough to convince you that purchasing a home is better than just paying rent and not acquiring any property. After all, you will be spending money on lodging, regardless of whether you rent or take on a mortgage. Why not take your chances and get yourself a home? If you manage to complete the payment, you will have a property named after you in perpetuity or you can make a profit out of it if you wish. That's a definite win-win deal for you.
Tax-Deductible Mortgage Interest
Did you know that if you take up a home in any upscale community in the United States, you can enjoy a tax deductible mortgage interest of up to $1 Million? Any home that is purchased by an individual or family as an investment is entitled to this provision. Therefore, you need not worry about paying extra when it comes to real estate taxes. You only need to be updated with your mortgage payments, be able to complete payment, and you can enjoy this amazing benefit brought to you by the U.S. Congress.
Numerous Temporary Deductions
Aside from the tax-deductible mortgage interest, the U.S. Congress is also encouraging its citizens to acquire homes by offering numerous deduction options. For instance, if you are a first-time buyer, you can now enjoy an $8,000 tax credit which you do not have to repay unless you sell the home you acquired in the first three years. MI premiums can also be reduced, depending on your income limits (it is best to ask a tax specialist to know more about this). Also, people who pay property taxes, even if their deductions are not itemized, can get up to $500-1000 extra deductions, depending on whether it was filed by a bachelor or joint estate (married couple).
Other Tax-related Incentives
You will also encounter minimal inconvenience if you decide to sell the primary residence you acquired. Did you know that you can make $250,000-500,000 in profits without owing any capital gains taxes? This is the government's way of encouraging people to purchase real estate as they maneuver real estate to become a very liquid asset.
There are many other tax benefits enjoyed by home owners that were not listed above. However, those that were cited are surely good enough to convince you that purchasing a home is better than just paying rent and not acquiring any property. After all, you will be spending money on lodging, regardless of whether you rent or take on a mortgage. Why not take your chances and get yourself a home? If you manage to complete the payment, you will have a property named after you in perpetuity or you can make a profit out of it if you wish. That's a definite win-win deal for you.
