The Big Three Homeowner Tax Breaks

Thursday, October 22nd, 2009

Yesterday, I discussed a few of the tax benefits land ownership provides people as it relates to IRA Roth accounts. If you're a homeowner, you understand the taxes you pay aren't cheap. BUT there are other tax benefits to being a homeowner that help offset the taxes.

Here are the BIG 3 homeowner tax breaks: 1) The deduction for mortgage interest on an owner-occupied residence was projected to cost $79.9 billion in 2008 2) The deduction for property taxes on owner-occupied residences, $14.3 billion 3) Exclusion of capital gains on the sale of owner-occupied residences, $29.0 billion. Click here to view the official government document and to see the projections in detail. Together, The Big Three came to an estimated $119 billion in 2007, and the Joint Committee projected them to grow to about $164 billion in 2011. McCain said that the “mortgage interest deduction should be left alone; it’s embedded in the U.S. tax code.” - Realtor Magazine, September 2008, http://www.realtor.org