Michele Buckman has put together some videos discussing the current DC market and what the future may hold for the real estate market in the Washington DC area.
One benefit of owning a home comes in the form of mortgage interest tax deduction, which reduces the true cost of home ownership and gives homeowners more disposable income. Home mortgage interest is a tax-deductable expense reported on Form 1040 along with other deductions such as medical expenses and charitable contributions.
Millions of U.S. homeowners rely on mortgage interest tax deduction to reduce the cost of home ownership. Homeowners can only deduct interest paid on a main home and a second home. Therefore, the mortgage must be secured by a qualified home - your main home or your second home - in order for the interest to be tax deductible. Under the current tax code, mortgage interest on first and second homes is generally deductible as long as these loans total less than $1.1 million. Therefore, homeownership is one of the best ways to trim your tax bill.
Mortgage interest includes interest paid on loans to buy a home, home equity lines of credit, and construction loans. Two types of debt fall under the deduction provision and are tax-deductible. The first type of debt is debt acquired in order to build, purchase, or improve your home, while the second type of debt is called equity debt, because the collateral used is drawn on the equity of your home.
For more information and advice on home mortgage interest tax reduction, contact Michelle Buckman. Representing W.C. & A.N. Miller and Christie's Great Estates in Chevy Chase, Northwest Washington DC, Capitol Hill, and the Trinidad DC neighborhood, Michelle works with a full range of clients, and is ready to answer your real estate questions.