Every year at this time, folks have the feeling there is a little more in the air than love. Perhaps it’s the anticipation of another sharp pointed projectile aimed in our direction. This ‘other’ feeling isn’t coming from the warm caring feelings of one near and dear to us with the aid of Cupid’s bow. . . It comes instead in the form of Tax Forms from our not so ambivalent Internal Revenue Service.
Every year we Americans appear to pay our government more in taxes with less to show for it at the personal level, and each year we attempt to seek out just one more deduction to soften the barb. It is at this time we realize how much we cherish owning our homes and other real estate holdings as real lifesavers in taxes. Mortgage interest is still very much deductible as are property taxes. If you own rental property, you may not only deduct these items, but depreciation, insurance and repairs as well.
If you are holding a large equity in your present home, chances are your deduction for mortgage interest is very low or virtually non-existent. Have you ever considered re-financing your home in order to pull out equity to buy a rental property; or perhaps you’ve wondered about selling and purchasing a more upscale home? Chances are either of these moves would dramatically improve your tax situation.
If you are considering purchasing a rental property, or if a larger home is in your dream for the future, please contact one of our Great West GMAC Real Estate professionals!
We look forward to hearing from you!
Written for Great West GMAC Real Estate
by: Myrl Jeffcoat