Tax breaks for new homeowners
May 30 2012 5:50PM
While the number of benefits that come along with purchasing real estate in Marina Del Rey and other parts of Southern California are bountiful, the tax breaks for homeowners, along with high affordability, should prompt potential buyers to start their home search. Kiplinger magazine offers more information on the tax breaks available for buying a home.
One of the largest tax breaks homeowners receive comes from deducting mortgage interest, they pay, according to the source. A homeowner's tax bracket can influence their deducting the interest but being able to exclude the interest paid can reduce a tax bill greatly.
When purchasing a house, homeowners usually pay points to get their mortgage, which are generated depending on the loan amount. These charges can also be deducted when filing taxes as well as the property taxes that are paid each year. It is important for new homeowners to keep record of their mortgage payments to make accurate deductions. Kiplinger notes that overestimating can change the amount owed or received.
Homeowners who make green improvements, such as buying energy-efficient appliances or windows and doors may earn a tax credit for the upgrades while also saving money on their monthly utility bills.
