Tax season is now well underway, and millions of first-time homeowners are discovering that their new home means big savings at tax time.
NAR 2016 President Tom Salomone expanded on this issue last week in his first op-ed as an “Advisor Voice” at NerdWallet, reminding readers of the tax advantages that accompany homeownership.
His message: Renting makes sense for some, but it means missing out on some big tax advantages.
“Homeownership comes with some impressive tax benefits,” said Salomone. “Depending on your situation, there may be thousands of dollars coming back your way. For renters, those benefits are off the table.”
Salomone touched on some of the biggest and best-known tax advantages, including the mortgage interest deduction, but he highlighted some less commonly-understood tax advantages as well. These include a deduction for purchasing “discount points” to lower a mortgage rate, as well as tax-free treatment for capital gains from qualifying home sales.
Unfortunately for renters, these tax advantages are only available to homeowners, as Salomone points out to readers at NerdWallet.
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.