Tim Bradford 216-324-8113

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Benefits of Owning - Tax

Tax Benefits of Homeownership  There are many advantages to homeownership.  The benefits of owning a home include increasing personal wealth, protection against inflation, diversification of assets, and significant tax benefits.  There are different tax advantages for owner-occupied as compared to investment properties.  The following is a list of tax benefits for owner-occupied homes.

Mortgage Interest - Per the Internal Revenue Service (IRS), if a property is owner-occupied, the homeowner can deduct the mortgage interest paid on their equity or second mortgage.  An owner-occupied property is defined as where an individual spends the majority of their time.  Equity and second mortgage interest can only be deducted if the mortgage does not exceed the value of the property.  Homeowners can take advantage of this tax deduction by consolidating other debts such as auto loans, personal loans, and credit cards into equity or second mortgages.

Real Estate Taxes/Private Mortgage Insurance - The property taxes for owner-occupied dwellings may be deducted on your tax returns.  Also, if you pay private mortgage insurance in your monthly mortgage payment, it may be deductible.

Business Expenses/Rental Income - If part of your home is used for your business or you rent out part of your home, the IRS may allow you limited deductions for your expenses.

Capital Gains - This tax break can be used if you sell your owner-occupied home for a profit.   One options is is to use the profit to purchase another another owner-occupied property.   Another is rules that allow no tax liability up to statutory limits determined by IRS. 

Moving Tax Credits - If it is necessary to move for employment, moving expenses may be deductible.

There are many other deductions that may be available to you as a homeowner. There may also be expenses on your closing statement from your title or mortgage company.  Remember, tax laws are constantly changing and can be extremely complicated, so always discuss your options with a knowledgeable tax preparer or CPA.





Timothy Bradford, Loan Officer
American Midwest Mortgage Corporation
6363 York Road, Suite 300, Parma Heights, OH  44130
Direct:  (216) 324-8113
Cell:  (216) 324-8113
Office:  (440) 884-5000 Ext. 269
Fax:  (440) 884-5034
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