Tax Benefits*

Tax Benefits for Home Sellers

Uncle Sam is very generous when it comes to tax benefits for sellers: so if you’ve been considering selling your home, anytime is a great time to sell! Single sellers are tax exempt on profit received up to $250,000 through a sale while married sellers are tax exempt on profit received up to $500,000 from a sale. These sellers must have lived in their homes as primary residences for at least two years (these don’t have to be consecutive) but here’s the truly amazing part- there is no limit to the number of times sellers can take advantage of these tax benefits! Military sellers are exempt from the two-year primary residence rule but can still get the same tax benefits. A nice perk is that sellers are not required to buy another home with these earnings. They can take that cruise around the world they always wanted to instead!

Tax Benefits for Homeowners

Read below to see all the tax benefits awaiting homeowners. The following is a list of homeowner deductions.

• Interest on home mortgage loans. Owners can deduct interest paid on mortgage loans for primary and secondary homes. Owners can deduct interest on loans of up to $1 million.
• Interest on home equity loans or lines of credit. Homeowners can deduct interest paid on a line of credit or home equity loan. Owners can deduct interest on such loans of up to $100,000.
• Points. Mortgage points can be costly so deducting them is a nice bonus.
• Refinanced points. These must be deducted throughout the life of the loan. Interest on home improvement loans. Keep in mind these loans must be for making significant improvements to the property.
• Real estate taxes. Property taxes can be significant amounts of money homeowners can deduct.