Donald Trump, presidential candidate and real estate mogul, has had his fair share of real estate ownership over the years. His constant media exposure lately is a regular reminder of how property ownership can build wealth. As we continue to watch the Denver Real Estate market rise, there is always discussion about whether owning property or a home makes sense today as home ownership becomes more and more expensive to attain. Did you know that you can capitalize on tax benefits by owning a home?
Tame your Taxes
Here’s an easy way to understand the main tax benefits of home ownership: Interest on a mortgage paid to a lender is tax deductible. So, if you make $100k and pay $10k of interest to the bank that year for your home mortgage, your tax professional should be able to subtract $10k from your yearly income. Remember, this is before factoring what you owe good ole, Uncle Sam.
Likewise, property taxes are figured in the same way. Owning a home in Denver creates an asset which typically grows in value over time. This is why many Denver Metro realtors continue to encourage many to become part of the Denver Real Estate market. From a tax perspective, owning a home almost always makes more sense than renting as it will decrease the amount you will have to pay to the government.
Leasing to Lessen the Load
However, buying a home may not be for everyone. Low home inventory, temporary financial situations, divorce, unavailable funding for a down payment, and careers that require frequent and unexpected moves are all examples of why renting can at times be a smarter choice.
Lean on Local Experts
As you prepare your taxes this April, take the time to review your real estate situations. Tax deductions can be complicated and change often. Be sure to consult your local certified tax and financial professionals. This will help to ensure your deductions are properly and fully optimized. These professionals can also recommend whether home ownership can benefit you.
Corken + Company has many trusted partners for your tax and financial needs. Contact Corken + Company today for more information on the Denver Real Estate market.