Essentials of Borrowing
Save On Taxes Through Home Loan Lending
Do you find yourself groaning every time you file your tax returns? Do you cluck with anxiety and regret each time you calculate how much of your paycheck actually goes to the tax guys? If your answer is yes to both questions, buy a house! Home loan lending makes owning a house easy. Additionally, it provides you with huge tax advantages. Home Loan Lending Lets You Save on Interest When you file your income statement, the interest you pay to purchase your principal residence is deductible. In fact, you can even purchase additional land through home loan lending and claim the residence interest as a deduction. The only condition is that this land be adjacent to your home. Furthermore, you can declare as a tax deduction the interest on as much as $100,000 of your home-equity debt.
The good thing about this is that even though you use the borrowed money to go on vacation or a shopping spree, the Internal Revenue Service, or IRS, won't care. as long as your house has the equity and this equity secures your debt. Home Loan Lending Helps You Save on Taxes Taxes give everyone headaches, especially when it's time to pay or compute them. Home loan lending can make the headache throb just a little less painfully, however. When you purchase a house, you can declare all the real property taxes you pay as a tax deduction.
You can do the same even if you are only a tenant shareholder in a cooperative apartment building. You can declare your share of the property taxes paid as a tax deduction. What makes this discount on taxes particularly interesting is that there is no limit to the number of properties that quality for this deduction. If you purchased 15 homes through home loan lending, the property taxes you pay on all 15 houses can be declared as a deduction. Home Loan Lending Gives You Gain Exclusion Suppose you went for home loan lending 30 years ago, and now you own your house. You want to sell it, however. Is there any way you can continue enjoying tax advantage? The answer is yes. If you lived in your property for at least two of the past five years before deciding to sell it, you can exclude from your income declaration $250,000 of the profit from the sale. Even better, if you sold your house for less than $250,000, you need not report the profit to the IRS. You have no tax liability on the sale.
Uncle Sam Is All for Home Loan Lending Why is the government so generous to homeowners? The truth is, Uncle Sam wants to put you in a house. Unfortunately, the costs of purchasing houses and lots are so prohibitive few could afford to go through a cash-only transaction. Most opt for home loan lending. Uncle Sam makes it easier for you to own a home by subsiding parts of the cost you incur in home loan lending. Clearly, a home does not just shelter you from the elements. It shelters you from tax, too. Home loan lending just might be the best thing that could ever happen to anyone since the discovery of indoor plumbing. After all, with home loan lending, you not only get to buy a house, you can use it to pay lesser tax!.
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