Tuesday, January 29, 2019 / by Larry Martin
There are several great tax benefits of being a homeowner.
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What are some of the great tax benefits of being a homeowner? Today I’m joined by Amy Corfixsen, my own personal accountant, to answer that question.
First, you can potentially itemize your deductions, which means you can deduct your mortgage interest and real estate taxes. If it’s your first year as a homeowner and you pay points on your mortgage, you can also deduct those points.
If you’re a first-time homebuyer, you can take $10,000 from your IRA to cover your down payment. If you have a traditional IRA, that’s penalty-free, so you still have to pay the tax on that withdrawal. If it’s a Roth IRA, though, the entire withdraw is penalty and tax-free.
The biggest benefit, though, comes when you sell your house because the profit from your home sale is tax-free. If you’re single, you can exclude up to $250,000 of your home sale profit from federal income tax. If you’re married, you can exclude up to $500,000.
If you have any more questions about the tax benefits of homeownership, you can give Amy a call at (616) 304-5247 or email her at firstname.lastname@example.org.
As always, if you have any more questions for me, don’t hesitate to call or email me. I’d love to help you.