Home ownership is encouraged by the Federal government by providing income tax benefits such as tax deductions, deferments and exclusions to buyers of homes.
These tax advantages are different for a property used as a main or primary residence than for any property purchased for investment purposes. In general, homeowners may deduct the following fitems rom their gross income to reduce their taxable income:
Ø mortgage interest payments on first and second homes that meet the definition of “qualified residence interest.”
Ø real estate property taxes, but not interest paid on overdue taxes
Ø certain loan discount points
Ø certain loan origination fees
Ø loan prepayment penalties
Ø casualty losses to the real estate not covered by insurance
|
