Sandbridge Real Estate Net

3 big tax breaks buying a home in 2015

2015 is shaping up to be another great year to buy a house. Healthy inventory and low mortgage rates are still here to make home buying more attractive. Also, there are those benefits of certain tax breaks. If you need any more reason why 2015 is the year to buy a home, these three significant tax breaks can help you benefit from purchasing a home this year.

1. Use points for even lower interest rates

With interest rates at an all-time low, its inevitable that they will start to go back up at some point. This means an extra point or two can make those rates even lower. Deductible points are already a standard tax break and can help lower those mortgage rates even more.

For example, “One point typically lowers your interest rate by about 0.25%. (A point costs about 1% of your loan amount, and it’s paid at closing.) So if you buy two points off a 30-year fixed-rate mortgage of $350,000 with a 3.8% interest rate for $7,000, you could reduce your interest rate down to to 3.3%.” That may seem like a small amount, but in the bigger picture every tenth of a percent counts. Points are considered interest and are tax-deductible in the same year for first-home purchases.

2. Take advantage of energy credits

Green energy is not only trendy right now, it is practical and makes you feel good about helping the environment. You can write of 30% of the cost of energy-saving systems as part of the Residential Renewable Energy Tax Credit. Some eligible items are Geothermal heat pumps, Solar panels, Solar water heaters, Fuel cell property, and wind turbines. There are no maximum credit limits for most of these qualifying items. This is only good until the end of 2016, so now is the time to consider these energy saving systems. Not only will you get a tax credit, but these can help you save a significant amount in energy bills in the long run while helping the environment.

3. Say ‘goodbye’ to renting (which offers no tax breaks)

Renting has become very expensive, and it doesn’t seem like it is going to change anytime soon. Likely, the cost of renting will only go up and has risen by 15.2% since 2009.. There aren’t any tax breaks which is where home buying wins the race. Of course, always consult with your realtor and financial advisor to be sure its the right choice for you. Overall, 2015 is a great year to consider buying your first place.

Note: Some tax breaks are in limbo

The following buyer-related credits will expire by the end of 2015 if Congress doesn’t act. Don’t count on them, but don’t count them out either.

• PMI deduction: This credit allows you to deduct money paid on private mortgage insurance.
• Energy upgrades: The Nonbusiness Energy Property Credit allots you a lifetime cumulative cap of $500 in deductions for energy-efficient upgrades (with a $200 lifetime cap for window upgrades).

See full article written by Craig Donofrio below.

http://www.realtor.com/advice/get-3-big-tax-breaks-buy-home-2015/

Contact Charlie Kelly, your Sandbridge Beach Real Estate Agent today to discuss buying a home in 2015!

This entry was posted on Friday, March 20th, 2015 at 9:00 am and is filed under Buyers, First Time Home Buyers, Home Improvement. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.