is real estate tax deductible

Is Real Estate Tax Deductible?

A lot of people don’t know this but real estate taxes are not taxable and can be written off. This is why you should hire a professional service to help you with your tax issues. There are many different reasons why you may need a tax professional on your team, including those who own business but don’t have full-time employees.

Many states have laws that make real estate tax deductions and write offs easier to qualify. For instance, if the home is being sold to pay off credit card debt, the buyer has to be at least 18 years old, the home is worth more than one hundred thousand dollars, and the seller has a deed of trust. If you’re in this situation, finding the right tax preparer is very important for you.

Tax deductions for the cost of mortgage insurance or refinance are also available. These deductions include the interest you pay on your mortgage loan, the down payment required for your home, and any type of closing costs or attorney fees you paid to help you get through the closing process. You also have the right to deduct expenses from your state income tax return such as car insurance and mortgage payments. These types of deductions will add up to more than the value of the property.

You also have the option of taking advantage of a real estate tax deduction on your local property taxes. These local tax levies are based on a percentage of the property’s appraised value. Some of these include the home owners association, state sales tax, property taxes, and even the utility rates you pay. The amount you can deduct will depend on how much property you live in and where it is located. Also, if you reside in an area that receives certain government programs, you may be eligible for a home owners’ association credit.

Another way that you can benefit from a real estate tax deduction is to use it to offset your state and/or federal taxes. The biggest reason why this is possible is because the federal and state tax levies can offset each other when calculating how much you owe. The amount you can deduct depends on your state’s laws, which will vary from state to state.

Whether you need to take advantage of a real estate tax deduction or not, it is always smart to consult a tax preparer before the final purchase of your new house. Even if you do take advantage, you can always come back to a professional in the future to find out what you can and cannot deduct.