Recent changes to federal tax codes may have your clients wondering if they’ll still see tax benefits from homeownership. We’ve rounded up some fast facts and industry opinions to help keep you in the know.
“For the most part, these changes mean almost nothing to people who didn’t itemize anyway or have small mortgage balances that don’t exceed the new limits. People with large loans, however, might notice the change.” – Business Insider
Points paid at closing:
Rental property deductions:
Capital gain exclusion:
“If you qualify for the valuable principal residence gain exclusion break, a married couple can avoid paying any federal income tax on up to $500,000 of home-sale profit. For unmarried individuals, the maximum tax-free profit is $250,000.” – MarketWatch
The bottom line…
Tax advantages, real and perceived, may not be as persuasive to homebuyers now as they have been in recent years. But, buying a home is still a smart financial move for many. Moreover, there are benefits beyond the pocketbook that your clients will consider when deciding whether homeownership is right for them.
“I still believe that, in addition to making sure our clients make a sound investment, we sell them a dream. That dream has to make financial sense, but the ancillary benefit, the personal benefit – that benefit cannot have a dollar sign attached to it. It’s simply priceless.” – Frederick Peters, via Forbes