Buying a Home vs Renting a Home Reason #1 Tax benefits an owner will receive

One of the Big benefits received when you buy a home is the tax deductions you will receive. See when  the April  deadline  to file your taxes comes you will have the opportunity to deduct the following taxes(check with your accountant for the most current list):

1) Property Taxes for the whole year you paid are deductible(check with your Accountant for new changes/limits 2018)

2) Mortgage interest for the year paid is still deductible this year as well(check with your accountant for new changes/limits 2018)

3) Closing Costs for buying a property are also deductible on the year of purchase(check with your accountant for changes/ limits on 2018).

4) If you live in your home for 5 + years  you will  have an opportunity when you sell your home. Uncle Sam says that you can sell it at a profit and do not have to pay taxes this  applies whether you are single  up to $250,000 profit  or Married up to $500,000 profit. Check with your accountant or IRS for more details after Dec 2017.

On the other hand if you rent the property in which you are living,you will be able to deduct  ZERO, NADA. The following table will show a common rent payment is $1200 per month and the money paid in rent:

Time         Amount Paid      Amount you keep

1 year          $14,400                        0

5 years        $72,000                        0

10 years      $144,000                      0

Eduardo Polack

(832)-403-0150

Elite Texas Properties Realtor

pilar_eduardo@hotmail.com