While gone are the first-time home buyer stimulus of the past there are still a few reasons owning your own home is a key to wealth and tax benefits. Here are two deductions that you can take as a homeowner.
Every payment you make on your home includes an interest payment. As long as the balance of your mortgage is smaller than the price of your home you are allowed to deduct this interest on your tax return. Since interest is the largest component of your mortgage payment in the early years it really can add up. And don’t worry about keeping track of all your interest payment amounts. Your lender will issue you a 1098 tax form.
It may sound crazy to be able to deduct a tax on your taxes but the real estate property taxes that you pay on your primary residence and a vacation home are fully deductible on your income taxes. Be sure to check if there are additional stipulations in your state.
Of course, we always recommend consulting your tax professional about the laws in your area and what your actual deductions will be. Just be informed that owning your home is the keystone to developing wealth in so many ways. Don’t wait to start building your future. Contact a Veritas Funding loan officer and find out the step you need to take to become a homeowner.