Under Section 121 of the IRS Code, and spelled out in IRS Publication 523 (2013), homeowners who sell their primary residence may be able to exclude from income any gain up to a limit of $500,000 if the homeowners are married and file a joint tax return. The limit is $250,000 for a single income tax filer or a married Read More >
Archives for November 2014
Did You Know Tax Deductible Interest Actually Reduces An Interest Rate?
Posted on: 11.18.14
In a post entitled “How Can Itemizing Deductions Affect a Homeowner’s Income Taxes?” I introduced a couple named Joe & Mary and demonstrated how, under current tax law, the tax treatment of mortgage interest allowed them to reduce the tax they otherwise would have paid and keep more of the money they earn. The tax Read More >
How Can Itemizing Deductions Affect a Homeowner’s Income Taxes?
Posted on: 11.11.14
I am often surprised to find out how few homeowners actually understand how the tax benefits of owning a house affects them. So much so that I am compelled to write about it and attempt to explain it in today’s post. In order for a homeowner to deduct mortgage interest on their income tax return the homeowner must Read More >
Which Closing Costs Are Tax Deductible When You Purchase a House?
Posted on: 11.05.14
Many first time homebuyers are told there are tax benefits to owning a home, however, few people can explain what those tax benefits are beyond the tax-deductibility of mortgage interest. In fact, many homeowners aren’t even aware of the tax benefits. The benefits are slightly different for purchase transactions than Read More >