There are many tax benefits to home ownership, the most well known deduction being the mortgage interest deduction.
Home mortgage interest on up to $1 million ($500,000 if married filing separately) of home acquisition loans secured by your principal residence and/or second home is fully tax deductible. You also may deduct mortgage interest on a home equity loan or line of credit up to $100,000 ($50,000 if married filing separately). Therefore, you can deduct interest on total home debt up to $1.1 million ($550,000 if married filing separately).
When you buy a house, you get to deduct in one giant sweep the points you paid to get your mortgage. When you refinance a mortgage, though, you have to deduct the points over the life of the loan. That means you can deduct 1/30th of the points a year if it’s a 30-year mortgage. That’s $33 a year for each $1,000 of points you paid.
Even more important, in the year you pay off the loan — regardless of the reason why — you get to deduct all as-yet-undeducted points. There’s one little exception to this sweet rule: If you refinance a refinanced loan with the same lender, you add the points paid on the latest deal to the leftovers from the previous refinancing–and deduct the amount gradually over the life of the new loan. Homes in these squeeze regions are still selling for up to 50% off previous home market values.
Tax Deduction Back!
Private Mortgage Insurance Deduction Extended
You can deduct your private mortgage insurance premium when calculating your income taxes (as qualified residence interest). The ATPRA Act of 2012 (passed in January 2013, from the fiscal cliff negotiations) extends this temporary deduction. The PMI deduction is a benefit for lower to middle income homeowners. Phaseout begins at $100,000 agi (adjusted gross income) and anyone who had more than $110,000 of adjusted gross income can’t use it. Homeowners who generally must get mortgage insurance are buyers with less than 20% down payment or refinancers with less than 20% equity.
Mortgage debt forgiveness
If you were the one who had a house foreclosed on and you still had mortgage liability after foreclosure, any amount forgiven by the lender was usually ordinary income. However, for debt discharged on or after January 1, 2007 and before January 1, 2013, the debt forgiveness is treated as tax free if the property was your primary residence. The limit on qualifying debt is $2 million ($1 million for a married person filing separately).
Did you miss out on the $8,000 first time home buyer tax credit? Here’s an even better idea:
There’s a “secret” that a lucky few have already found that’s enabling them to literally buy houses that ordinarily sell for $1 Million or more – but now for just $1,997 or LESS! There are 3,141 counties in the United States, and each one possesses this exciting new opportunity whereby anyone with as little as $100 to seldom more than $5,000 can buy homes ordinarily valued from $30,000 to in quite a number of cases above $5 million! – often for just 1% to 5% their selling costs. And the BEST part about this is that you can be located anywhere and still buy any home you want – even if you’re 3,000 miles away or more.
But, you don’t have to visit the county you buy the homes in – instead, you can
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No matter what happens you make money! You basically buy a homeowner’s tax lien certificate because he or she wasn’t able to pay their property taxes. They by law must pay you anywhere from 16% to as much as 36% in interest – and in many cases they must pay you back within as little as 6 months.
But, if they can’t pay you back, YOU own their home free and clear (and for what usually amounts to just 1% of the house’s actually selling value!). At this point you can either keep the house for yourself, or you can swiftly turn around and resell it (in any economy, good or bad!) to banks, lenders or individual buyers answering your little classified ad! – and where you make a killing! Go to this site click here. It has all the facts as to how you do this right from your laptop or PC.