Tax benefits have been extended through the 2013 tax season so what does that mean for today’s homeowner? 
The most known benefit is the mortgage interest deduction available to those with financing up to $1 million. At the time of purchase, the buyer can also enjoy a deduction for Private Mortgage Insurance (used in a number of loans in which less than 20% is made as a down payment). Another deduction is available if the buyer pays points or origination when they finance their home. While living in the home, there are additional deductions available for energy efficiency repairs and upgrades, home improvements, and use of part of the home as an office.
Upon sale of the home, up to $250,000 for an individual or $500,000 for a married couple can be received as profit tax-free along with closing costs deductions. If the homeowner is under water, the Debt Forgiveness Act, extended through 2013, relieves the homeowner of having to pay tax on the amount of debt forgiven.
The National Association of Realtors offers a wonderful Field Guide to Mortgage Interest Deduction including links to the most up to date articles on this subject. It is also recommended that you speak with your accountant.
I help clients not only purchase and sell their homes, but also to determine the benefits of renting vs. purchasing a home. Call me- James Wehner 480-323-5462 for a free consultation.
