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