| Everybody loves a piece of land. That is the real | | | | 5. Home office deduction: if your home doubles up as |
| limited resource we have on earth. And the | | | | your office too, then this is the deduction to make. |
| government allows us some deductions on them too. | | | | 6. Selling Costs: these are costs that you normally |
| Real estate tax deduction is a policy whereby owning | | | | include like legal costs, transfer costs advertising and |
| a piece of property like your house gives you many | | | | admin costs and so on. |
| tax advantages. Some of these include: | | | | 7. Capital gains exclusion: is a house which you resided |
| 1. Interest paid on mortgage: permissible unto a | | | | for two years in the past five years, you need not |
| maximum if you have bought your first and second | | | | pay any capital gains tax. Married taxpayers can get |
| homes within $1.1 million. | | | | a maximum limit of $500000 and 4250000 if filed |
| 2. Fee points: completely deductible points, these are | | | | individually. |
| arrived at when you have taken mortgages. One | | | | 8. Home moving costs: this is an option available to |
| point converts to 1% of the original amount and this | | | | ones who are relocating. If you are moving to any |
| is literally thousands of dollars and completely | | | | other part of the stator country, claim it. |
| deductible. | | | | 9. Property Tax: Finally, the real estate tax (property |
| 3. Equity loan interest: certain rules imposed by | | | | tax) that you pay to your local government is |
| Internal Revenue department, but partially deductible | | | | completely deductible from your federal income tax. |
| as it are loan on your home credit. | | | | So you see, taxes are not really that harsh, if you |
| 4. Home improvement loan interest: interest on | | | | plan and make the most of it. Just keep those years |
| making improvement but remember, there is a slight | | | | and eyes open and make a small payment to those |
| difference between a repair and an improvement. | | | | smart tax consultants, they will ensure they will the |
| You can flout the rules by knowing the difference. | | | | rest. |