Tax benefits promote homeownership, affordability still high – Santa Monica Real Estate
Those considering investing in real estate in Santa Monica or surrounding areas may benefit from beginning their home search and closing on a property before the end of the year. This is because there are many tax breaks and credits for homeowners. Below are some benefits prospective buyers should be aware of when making a decision to buy or wait.
One thing those who rent their home don’t pay are property taxes. While this is an additional payment required by homeowners, they can be deducted from both state and local taxes. In some cases, these are included in a single payment, while those who pay for them on their own may need to collect proper documentation to show how much is paid.
Not only will investing in eco-friendly appliances and materials save you money, but they can also provide a tax break when installed before the end of the tax year. Different upgrades can be worth varying percentage amounts, however, they must all meet standards of the Energy Star program.
For many homeowners, the greatest tax break is the Mortgage Interest Deduction. This allows those who have made the investment to deduct all the interest from their mortgage when filing taxes.