• 681

Seizing available homeownership tax breaks

Mar 13 2012 2:47PM

With rental prices rising in many areas, a more affordable option for some people may be to purchase some of the available real estate in Los Angeles County. However, many potential buyers may not be aware that they can save additional money through various homeownership tax breaks.

While property taxes will be an additional bill homeowners do see, the amount they pay in property taxes each year is also something that can be deducted from homeowners' income taxes, reducing its actual impact on a household's finances.

One of the biggest tax advantages of homeownership is the available income tax deduction for mortgage interest. For each mortgage payment, a significant amount goes toward interest on the loan, and not the actual principal amount.

Whatever homeowners pay in interest on their home loan, they can deduct that amount, which is generally thousands of dollars per year. Buyers also won't need to calculate this themselves, as the lender should send out a year-end summary for use each tax season.

That interest can really add up during the early years of a loan. For example, on a $200,000 loan with a 7 percent interest rate, the monthly payment is around $1,300. However, in the first year, homeowners will pay more than $13,000 in interest.

Find a HOME
or
OPEN HOUSES

Today's Real Estate News

Pending sales hit more than six-year high in May
Published: Jun 28 2013 11:31AM
Mortgage rates surge in final week of June
Published: Jun 27 2013 2:29PM
Purchase requests rise despite rate increases
Published: Jun 26 2013 3:01PM
Home prices rise by most in seven years during April
Published: Jun 25 2013 2:15PM
Jodie Foster lists Hollywood Hills home
Published: Jun 24 2013 3:59PM


TheMLS.com Area Resource Guide


Bel Air / Holmby Hills
Beverly Center / Miracle Mile
Beverly Hills
Beverly Hills Post Office
Beverlywood
Brentwood
Cheviot Hills / Rancho Park
Culver City
Downtown Los Angeles
Eagle Rock
Glassell Park
Hancock Park - Wilshire
Hollywood
Hollywood Hills East
Los Angeles Southwest
Los Feliz
Malibu
Malibu Beach
Marina del Rey
Metropolitan
Metropolitan South
Metropolitan Southwest
Mid Los Angeles
Mid Wilshire
Montecito Heights
Mount Washington
Pacific Palisades
Palms Mar Vista
Park Hills Heights
Playa del Rey
Playa Vista
Santa Monica
Silver Lake / Echo Parks
Sunset Strip
Topanga
Venice
West Hollywood
West Los Angeles
Westchester
Westwood / Century City



© 1995-2011 The MLS™     Terms Of Use | Real Estate Area Guide | Search Homes & Open Houses | CLAW Maps Beta | Forms | Rules & Regulations | Resources | Contact Us | Site Map