Tax Tip






 

 


Buy a Home

Three factors make owning your home one of America's leading tax shelters.

  1. Long term inflation, economic growth, and population growth push real estate values upward.

  2. Most of the purchase price can be financed and the interest is tax deductible, effectively cutting the interest cost by the taxpayer's marginal tax rate.

  3. New Law (TRA '97): Homeowners may exclude up to $500,000 in gain from sale of a principal residence ($250,000 for single taxpayers). The new tax break is retroactive to May 7, 1997, and is reusable every two years. The new exclusion replaces the prior law rollover and one-time $125,000 exclusion provisions.

Keep accurate records and you will pay less out in taxes each year. By increasing your deductions on several things you will notice this at tax time.

This tip is a starting point for limiting your taxes. All the information is not included here due to space limitations. Always consult a professional before using a tax tip. These tips should be used to ask your CPA or investment advisor about.

If you have a question, please fill out our contact form.

If you prepare your own tax return, take a look at these 10 tips to help you. Look at our
tax preparation services. They are cheaper than going down the block!
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Last modified: April 15, 2003