Tax Advantages of Homeownership

In the current housing market I know many people are questioning why they would want to buy a house when it seems that many people who are selling properties right now are breaking even or are losing money.  There is never a guarantee that a property will sell for more money than you paid for it, but that is a risk that you take with any investment.  There are tax advantages to owning a home as well. You are able to write off the interest and property tax payments.

In fact, RIS Media recently reported that younger homeowners have higher average mortgage interest deduction in the 35 to under-45 age group, followed by the 18-to 34-aged taxpayers, and declines as the taxpayer gets older. According to the research, this occurs because the mortgage interest deduction peaks soon after the taxpayer moves from renting to homeownership, and declines over time as homeowners pay down existing mortgage debt and increase homeowner equity.

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