5 Real Estate Tax Myths
April 8th, 2007 at 11:53pm Under Uncategorized
Xander wrote an interesting post today on
Here’s a quick excerpt
With the U.S. tax code, homeownership tax benefits are not always clear-cut. That frequently leads to some bad information floating around. While myths, half-truths and misconceptions may abound, we’ve narrowed it down to five that, if you buy into them, could cost you.
1. My mortgage interest will reduce my tax bill.
This is true for the majority of homeowners, but not for all. And this tax break won’t work forever.
To take tax advantage of your home loan’s interest, you must itemize and come up with a total that exceeds your standard amount. On 2007 tax returns, the standard deductions are $5,350 for single taxpayers, $7,850 for head of household filers and $10,700 for married couples who file jointly. These amounts increase a bit each year to account for inflation.
“Given home prices these days, most owners are itemizing,” says Mark Luscombe, principal tax analyst with CCH of Riverwoods, Ill. By the time […]
Read the rest of this great post here
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