There are a number of tax benefits you can gain by investing in a house. Best of all, these are benefits that you’ll have access to irrespective of the type of abode you’ve purchased. Condos, townhouses, and family homes in Irvine all qualify buyers for some fairly remarkable savings.
The biggest tax break that you’ll get for your new real estate in Irvine will be reflected in your monthly house payment. This is because the majority of this payment will be credited towards the interest on your loan. If your home loan is under $1 million, all of the interest you pay over the course of the year is going to be tax deductible. It is even possible for investors to deduct the interest they pay on mortgage loans for second properties. In fact, this tax break can additionally extend beyond your first mortgage. If you’ve decided to get a home equity loan or get extra money by refinancing, you’ll find that any debt of $100k or less is fully deductible.
You’ll also have deductions you’re qualified to receive in relation to your property taxes. One considerable part of your monthly mortgage payment will be reserved for property taxes. Each year, you’ll get an annual statement from your lender reflecting your payments in mortgage interest and property taxes among other things. You can use this statement when filing to deduct all property tax payments. This is a deduction that you can continue to claim as long as you own the home and remain current with your property tax payments.
If you paid points to get a more desirable rate on any one of your home loans, you can deduct these points in the same year you paid them. There are, however, a few prerequisites that must be met in order to qualify for this deduction. Points are only applicable for deductions when the related loan has been used to build or purchase a new home or if the payment of points is an acceptable practice in your locale and the points fall within the typical range.
If you’re still looking for your dream home, reach out to Irvine Residential Living. Our real estate agents are experts the area’s many neighborhoods, including Woodbridge, University Town Center, Turtle Rock, Northwood, and Great Park, Irvine, and can help you find the right property for your and your family’s needs.