"That time of year" is right around the corner - - the infamous April 15 personal income tax deadline - - and it is a time when homeowners realize their considerable tax advantages. Fortunately for homeowners, the "American Dream" of owning your home is respected and promoted by federal policy with the healthy support of organizations like the National Association of REALTORS. Since 1920, the government began to allow tax deductions for home loan interest - - the only homeowner tax break through 1950. Property tax deductions were granted in 1951, and the 1997 Taxpayer Relief act further expanded advantages for homeowners. Homeowners realize the dual benefits of property appreciation and major tax breaks that result in considerable reduction of their tax bills.
Other homeowner deductions can include: interest buy-down points in the year of purchase, certain types of home improvements, some types of annual assessments and casualty losses. Especially at income tax time, homeowners understand the crucial value of keeping good records to be able to take full advantage of tax benefits.
The Internal Revenue Service provides full details at their website: www.irs.gov. For more complex tax strategies involving real estate transactions, you should talk with a tax advisor and your Realtor. "Work with a REALTOR who will work with you."
