Welcome to the HomeInUtah.com Blog

2017-03-14 13:53:56
Tax Benefits of Home Ownership

U.S. taxpayers have enjoyed specific tax benefits for home ownership since personal income tax was introduced by the 16th amendment in 1913. While these benefits may not be the primary reason that motivates a person to buy a home, they are still tangible and not available to tenants.26005238-266.jpg

The exclusion of capital gains tax on the profit made from a home is unique from other investments and provides homeowners significant savings. Single taxpayers can exclude up to $250,000 gain and married taxpayers up to $500,000 gain. During the five-year period ending on the date of sale, a taxpayer must have: owned the home for at least two years; lived in the home as their main home for at least two years; and, ownership and use do not have to be continuous nor occur at the same time.

Gain on the sale of a principal residence in excess of the allowed exclusion are taxed at the lower long-term capital gain rate of the owner.

A homeowner may take the standard deduction or itemized deductions in any tax year based on which will create the largest deduction. Property taxes and qualified mortgage interest are allowable itemized deductions.

Qualified mortgage interest is acquisition debt plus home equity debt not to exceed the maximum amounts. Acquisition debt is the amount of debt incurred to buy, build or improve a first and second home up to $1,000,000. Home equity debt is limited to $100,000 over the current acquisition debt on the combination of a first and second home and may be used for any purpose.

For more information, see your tax advisor or see IRS Publications 523, Selling Your Home and 936, Home Mortgage Interest Deduction.

 
Blog Archive
2017-08-15 12:32:35
Shorter Term - More Savings

2017-08-08 10:36:28
Home Energy Aware

2017-08-01 14:57:03
Assumptions are an Alternative

2017-07-31 14:15:47
Home Safe Home

2017-07-24 15:34:43
Other People's Money for College

2017-07-12 11:52:23
Family & Friends Mortgage

2017-06-26 15:47:36
Don't Have a CLUE?

2017-06-21 15:10:06
What Can You Expect?

2017-06-19 11:00:46
Emergency Kit for the Car

2017-06-05 12:44:58
Hands-Only CPR

2017-05-29 09:26:16
Must Be This Tall to Ride

2017-05-23 12:28:02
Good Info - Good Decisions

2017-05-23 12:03:56
Reasons to Refinance

2017-05-23 11:27:10
An Alternative to Paying Tax Today

2017-05-22 14:38:05
Would-be Buyers with Student Debt

2017-05-18 13:26:06
An Alternative to Paying Tax Today

2017-05-18 12:59:37
Reasons to Refinance

2017-05-18 12:56:02
Good Info - Good Decisions

2017-05-08 10:41:10
Would-be to Should-be

2017-05-03 07:31:01
Indecision May Cost More

2017-04-09 19:51:20
Lower the Rate - Deduct the Interest

2017-04-05 17:45:27
Rentals are IDEAL

2017-03-30 13:38:28
Important Estate Documents

2017-03-27 13:09:21
Save the Cost of Mortgage Insurance

2017-03-14 13:53:56
Tax Benefits of Home Ownership

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.