The Tax Benefits of Owning Real Estate

 If you are still renting, now may be the time to switch to homeownership and start enjoying certain tax benefits.

Want to sell your home? Get a FREE home value report. 

Want to buy a home? Search all homes for sale.

Owning a home offers a number of practical benefits, but did you know that it also offers some incredible tax advantages?

There’s a good reason that homeowners have an average net worth that’s 47 times more than the typical renter’s. So if you don’t already own a home, now may be the time to start your search.

When you rent a property, you may already be paying at or above the amount you’d pay each month if you owned a home. Why not make the switch to homeownership and start enjoying tax benefits? There are far more benefits to paying your own mortgage than there are to paying someone else’s.

“

There are far more benefits to paying your own mortgage than there are to paying someone else’s.

”

Imagine you took out a 30-year mortgage, which is typical for most homeowners. Though your first year of payments will go almost exclusively toward paying off the interest, the portion of payments applied toward interest become a tax write-off. Not only that, but, unlike rental payments, mortgage payments are fixed.

And as you make these mortgage payments over the years, less and less will be applied toward interest and more and more will go toward principal. You can see a graph illustrating the breakdown of these payments over time in the video above.

The bottom line is this: There are many tax advantages associated with homeownership. To make sure you’re taking full advantage of them, though, I highly recommend meeting with your CPA within your first year of homeownership.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.