Celebrate!! You did it! You're going to get a big tax break now. You get to deduct the interest that you pay each month off of your federal tax return. In the first few years of your loan, the majority of your payment is interest. This can be a lot of income tax savings. You may also get to deduct some of your closing costs and property taxes.
Keep any and all paperwork for your home. When you go to sell it, you won't have to pay any income taxes on the gain as long as the gain is less than $500,000 for a married couple($250,000 for a single person) and you have lived in the home for at least 2 of the last five years. It's the only thing I know of where you can make that kind of profit and not have to pay any income taxes. You can buy a home, sell it in 2 years, and make a huge profit without paying income taxes on the profit!!
Congratulations!!
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment