There are many benefits of home ownership such as the pride of ownership, the savings (currently, a mortgage is generally less expensive than paying rent) over making your landlord rich, as well as the tax advantages.

The biggest tax advantage is the mortgage interest deduction.  When you buy your home, the majority of your payment is interest, with a lot less going toward your principal.  The interest that you pay every month is deductible.

Yes, this means that your tax return just got a bit more complicated, but the savings will be worth your trouble.

Another savings you may incur when you purchase a home is the ability to write off any “points” you may have paid in order to get a better rate.  You must claim this deduction for the same year you paid the points. Check the closing statement from your purchase.

I’m sure there are a ton of questions that you have regarding the advantage of home ownership, especially when it comes to the tax advantage.  Give me a call at 910.431.9395 and I can make sure I put you in touch with a certified public accountant that will be able to answer all your questions, as well as take a look at your personal situation and show you how to make home ownership work for you!