Buying and owning real estate can provide you additional tax deductions. The following list is merely examples of potential real estate deductions that may or may not be available to you. Ultimately you would need to talk to a professional tax adviser to find out if you meet any specific requirements necessary to qualify for the deduction.
- Mortgage interest paid
- Points paid to lower your interest rate
- Loan closing fee
- Depreciation (for home offices or investment properties)
- Capital Gains Exemptions
It is always a good idea to keep records of your expenses for repairs and improvements to the property as you may be able to add them to the basis when determining your taxable gain. Your basis is essentially the amount of money the property cost you. It does not include maintaining the property but does include value adding improvements. A higher basis will reduce your taxable gain when you sell.
Mountain Living Real Estate and it’s agents are not tax advisers. Please discuss any tax related concerns with your tax adviser.
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