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3 MORE Great Reasons to Buy a Home in Port A or North Padre Island

3 MORE Great Reasons to Buy a Home in Port Aransas or North Padre Island
Our last post—3 Great Reasons to Buy a Home—was incredibly popular… and we decided to share three more great reasons to buy instead of rent.

3 MORE Great Reasons to Stop Renting and Buy a Home in Port A

Property Tax Deductions

We mentioned taxes in our last post, but only mortgage interest. You may also be able to deduct property taxes, according to IRS Publication 530. Naturally, you’ll need to consult with a tax professional if you’re going to attempt to deduct your property taxes from the amount you owe the Internal Revenue Service. (Remember, we’re not tax advisers—we’re Port Aransas real estate experts.)

Capital Gain Exclusion

If you’ve lived in the home for two out of the past five years, you may be able to exclude up to $250,000 for one person or $500,000 for a couple on your profit from capital gains.
You don’t have to buy a new home to do so (or “move up,” contrary to popular belief) in order to take advantage of capital gain exclusion, but again, you’ll want to consult with a tax professional.

You’re Always Building Equity

If you’re paying down your mortgage, you’re typically building equity in your home. Naturally, if your home is depreciating in value (it happens as part of a natural market cycle, so don’t worry too much if your value dips now and then) you won’t be building as much equity as you would if it were appreciating.
For the most part, you build equity every time you make a mortgage payment. And if you pay extra toward the principal each month, you’re building even more equity.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 
 

Filed under: Blog, Buying by Julie Woodward
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3 Great Reasons to Buy a Home in Port Aransas

3 Great Reasons to Buy a Home in Port Aransas or on North Padre Island
If you’re like most people, you’re excited about buying your first home—but is home ownership really right for you?
There’s no one-size-fits-all answer about whether buying a house is the right decision (or when you should buy a house, for that matter), but here’s what most homeowners report as some of the best reasons to buy instead of rent.

3 Great Reasons to Buy a Home

While these don’t apply to every situation, these are the best reasons many of our buyer clients buy homes.

Pride in Ownership

It’s the American Dream—you grow up, get a job, and buy a house. And you should be proud to own a home; you’ve earned it.
You can also take pride in the fact that this home is yours, and you can paint it, stomp on the floor from upstairs, and do whatever else you’d like in it.

Real Estate Tends to Appreciate

In addition to providing you with shelter, your home is likely to appreciate. Most real estate investments—and that’s what a home is—grow in value over time. While some depreciate, and nearly all homes are subject to the market’s ups and downs, for the most part, buying real estate can be a great investment.

Deductions for Mortgage Interest

When you pay interest on your mortgage loan, you may be able to deduct it from your taxes. The IRS requires that your mortgage balance be lower than how much your home is worth, but to be sure, you should consult with a tax professional before attempting to write off the amounts you’ve paid.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying by Julie Woodward
No Comments »

Four Places To Look For Tax Deductions In Your Home

Four Places To Look For Tax Deductions In Your Home Paying your income taxes each year leave your wallet a bit thin? There may be money hiding in your home that lessens your tax burden. Here are four places to look:

1. Home-Office Deduction

If you work from home, you could qualify for a home-office deduction. Taking the deduction can be a bit complicated; so many people who qualify don’t claim the exemption. An estimated 26 million Americans have home offices, but only 3.4 million claim them on their tax return.

Perhaps that’s why the Internal Revenue Service attempted to simplify the process in 2013.

The write-off takes into account depreciation, utilities, insurance, the amount of square footage dedicated for office space, whether you host clients at your house and other factors.

Because the parameters involved in filing a home-office exemption are rather complicated, it’s best to keep all business-related receipts, records of client meetings and other pertinent information to make things easier when you prepare your return.

2. Casualty Loss

Damage to your home from an act of God or a theft or burglary may qualify you for an income tax exemption. To qualify for the write-off, the causality loss must meet the “sudden event test.” That means it must be sudden, unpredictable, have involved some natural force and occur in a single instance.

To claim thefts and burglaries, you must be able to prove that a wrong doing has actually occurred. It can’t just be a case of a lost item that you suspect was stolen. Proof can come in the form of witness statements, police reports or newspaper accounts.

3. Energy Efficiency Upgrades And Repairs

Upgrading your home with energy efficient improvements can qualify you for a tax deduction. New roofs, insulation, windows, doors and a number of additional items qualify for the deduction. The deductions lets homeowners claim 10 percent of the total bill for energy efficient materials. The maximum credit is $500.

4. Real Estate Taxes And Newly Purchased Homes

New home owners should look at their settlement statement a bit closer. If the previous owner prepaid property taxes that cover any of the time you owned the home, you can include the prepaid taxes in your property tax deduction.

Don’t pay more than you have to when you file your taxes each April. Consider these commonly overlooked deductions that can lessen the amount you have to pay.

Filed under: Uncategorized by Julie Woodward
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