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Importance of tax deductions when buying a home?
How important are they? Do I need to bite the bullet this year in order to buy a home? Basically I am trying to buy a house but it looks like I will loose a couple of grand on my tax deductions this year. Any body has experience in this matter?
3 Answers
- M WLv 78 years agoFavorite Answer
It only makes a difference if your itemized deductions exceed he IRS standard deduction for your filing status.
Most people just take the standard deduction now because mortgage interest rates are so low and interest paid is low.
As far as property taxes paid, you take the deduction in the year in which they are paid, so you won't get that deduction until the second year of home ownership.
- A HunchLv 78 years ago
No one loses money with tax deductions. We don't know what you are trying to say.
If you are considering purchasing a home to get a mortgage interest deduction, make sure you would even receive it. Most home owners are not eligible because they are not paying enough mortgage interest to justify itemizing vs using the standard deduction.
- 8 years ago
There are many tax deductions that only homeowners can take advantage of. From mortgage interest deductions to property tax deductions, many tax benefits have persuaded potential home buyers to buy homes.
