Home Purchase During Tax Time

Home Purchase During Tax Time And Mortgage Process

ByAlex Carlucci

This Article On Home Purchase During Tax Time Was PUBLISHED On April 27th, 2020

Unfortunately one of the constant things we have in our life is paying taxes.

  • It is always a wise endeavor to try and minimize one’s tax burden as much as possible
  • Income tax time is right around the corner this year
  • So I thought it would be a good idea to give some great real estate tax tips to help you save money and if you are thinking of home purchase durin
  • g tax time

In this article, we will discuss and cover the Home Purchase During Tax Time And Mortgage Process.

Benefits Of Owning A Home

Owning a home can save taxpayers thousands of dollars of tax deductions.
  • Some of these deductions include capital gains deduction which allows you to earn up to $250,000 on your own or $500,000 as a married couple
  • Mortgage interest can be deducted up to $1 million worth
  • Discount points which help you lower your interest rate on your loan can also be tax-deductible

You can also deduct property taxes.

Challenging High Property Taxes

It can be very upsetting to discover your property taxes are going up.
  • You should educate yourself on how your taxes are assessed
  • Visit your local assessors’ office or go online to inquire how property taxes are determined and how they can be appealed
  • Your real estate agent may be able to help you gather evidence that you can use to appeal the assessment of your home

Remember each county and state has its own deadlines for challenging assessments.

A Home Purchase Can Mean Tax Deductions

A big difference in owning and renting is that you can take advantage of tax deductions.
  • You can deduct your mortgage points from your Loan and you can also deduct your prorated mortgage interest and prorated real estate taxes
  • You can also deduct the interest from a construction loan to build a new home as long as it is your primary residence

A qualified tax consultant will help you take advantage of every deduction.

Taxes For Divorcing Homeowners

Divorcing is never easy but there are many tax implications that should be addressed with a tax consultant.
  • There are several different ways you can handle the ownership of your house with different tax implications
  • One spouse can buy the other out as long as you agree on a fair price and can afford the cost of the mortgage
  • You can also sell the house and split the profit with each other earning up to 250,000 tax-free money
  • One spouse could also remain in the home to raise the children rather than selling the home
  • To get the tax benefits of homeownership you will need an attorney to document that the home is still your primary residence
  • Another option would also be that you and your spouse could share the house for tax purposes

Also, consult a tax consultant if you own rental properties together and an attorney to understand all your options.

Benefits Of Home Purchase During Tax Time

Remember it is always best to consult professionals to help you make wise decisions.
  • There can be many hidden tax deductions that the average person does not realize until a professional has been consulted
  • I hope some of the given information above will help you put your tax puzzle pieces together!
Have a great tax year!!

About The Author

Massimo Ressa is the Chief Executive Officer of Gustan Cho Associates Mortgage Group. Massimo is also a contributing writer for Gustan Cho Associates.  Massimo’s passion is to help the public on both their real estate and mortgage lending needs is what motivated him to launch NEXA Mortgage, LLC dba as Gustan Cho Associates, a national direct lender with no overlays on government and conventional loans. Massimo Ressa is a producing CEO and is a licensed mortgage loan originator. Massimo Ressa is an expert in all areas of mortgage lending, from FHA Loans, VA Loans, USDA Loans, Reverse Mortgages, Jumbo Mortgages, FHA 203k Rehab Loans, to Commercial Lending. Massimo is also a specialist in non-conforming mortgage loan products. Gustan Cho Associates is the national consumer direct division.

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