Home Tax Information
Advantages of Buying a Home
Mortgage rates are more flexible today than ever, home prices are low, and sellers are very motivated. On top of that, the tax laws favor home ownership like no other tax shelter. Many people currently renting compare their rent payment with a projected home mortgage payment and feel that they can’t afford the monthly payment... without realizing that the projected tax savings may significantly reduce the effective mortgage payment.
It is very important to point out that real estate deductions, taxes, and mortgage interest deductions, are the only ones left by Congress fully intact.
Click on the link below for answers to frequently asked questions about the advantages of buying a home. more...
Business Use of Your Home
Whether you are self–employed or are an employee, you may be able to deduct certain expenses for the part of your home you use for business. Part of your home must be used regularly and exclusively as one of the following: - Regularly and exclusively as the principal place of business for your trade or business.
- Regularly and exclusively as the place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business.
- In connection with your trade or business, if you use a separate structure that is not attached to your home.
Sale of Your Home
If you have a gain from the sale or exchange of your main home in 2004, you may be able to exclude from income up to $250,000 of the gain ($500,000, for certain married taxpayers filing a joint return). The exclusion may be allowed each time you sell or exchange your main home, but generally no more frequently than once every two years. You cannot deduct a loss from the sale of your main home. Click the link below for answers to frequently asked questions about selling your home. more...