Tax write-offs

by Property Management Software on March 13, 2016


Tax write-offs
 
Tax write-offs

It is known to everyone that some of the major advantages of home ownership come in the form of tax write-offs. According to some recent report 80% of home buyers think that investing in home ownership is a great idea and other 4% think that it better than investing in the stock market.

Tax deduction is just one reward you receive from the property investment. But, in reality there are even more advantages and these advantages can easily slip under the radar of any new homeowner.

Blow is the list of those moves and surprising tax issues.

Refinancing
Lower monthly payments or being able to pay the home loan faster with the same installment is the main reason for refinancing into lower interest mortgage rate. Here most people forget to calculate the potential tax deduction which is primarily based on the mortgage interest. Some of the homeowners are able to avail the deduction up to 100% as they pay on a mortgage as high as $1 million on their primary residence.

Becoming a landlord
Real estate investors know how complicated tax can become when it comes to holding, renting and selling rental properties. But, in case you become an accidental landlord who rent out rooms for few nights or decide to rent a part of house for a certain period of time you will be liable to pay the taxes but those taxes can be passed on to the customers during the their stay.

Renting
Renting normally isn’t thought of as an intentional decision but is regarded as temporary decision until tenants are able to afford the new house. But, there are also people who have sufficient savings and income and yet they have not purchased the home for various reasons.

Someone who doesn’t own a home should not buy one for tax reasons. But, if you are considering then you should be aware of the implications. Some experts believe that an average renter in America earns enough through April to be able to pay various taxes. So, as you move up in income group consult your tax professional to know if there is some tax relief in homeownership.

Did you ever get a tax surprise? Please share the story in comments below.

Give a try to see for yourself and utilize its migration package before the time expires.
For more info or staying abreast to the changes in its services, you can visit this link: http://www.simplifyem.com/pay-rent

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