Home
Properties
For Sale
MLS Search
Login
About
Team
Koolik Advantage
Concierge
Private Client Network
Bridge Loan Services
Trust, Estate and Divorce Real Estate Sales
Compass Advantage
Private Client Network
Home Search
Testimonials
Marketing
Blog
Neighborhoods
Contact

The 6 Key Tax Benefits to Owning a Home


Buying a house is a big commitment. 40% of Americans say buying a new home is the most stressful event in modern life (Home.com). That being said, there are aspects to owning a home that might reduce stress...can anyone say "tax break?" 

The 6 Key Tax Benefits to Owning a Home:

1. A deduction of up to $750,000 worth of mortgage interest.

2. If you buy your home for $500,000, and it is worth $1 million when you die, your heirs' cost basis re-sets at $1 million and you bypass the capital gains on the initial value gain.

3. A $250,000 tax-free capital gain deduction for singles and $500,000 for couples upon selling. In order to receive the exclusion, you have to live in the house as your principal residence for 2 out of 5 years.
4. Tax-free rental income of 2 weeks if you rent your home out for 2 weeks per year.

5. A SALT (state and local real estate taxes) deduction up to $10,000.00.

6. The current tax law allows you to take a tax deduction of $5 per square foot, for up to 300 square feet of office space. You can get a maximum deduction of $1,500. To receive this, your home office needs to be your principal place of business where you have regular and exclusive use for business.