Real Estate With Rita

Congratulations ... You have just taken a step up the American dream ladder to home ownership! Along with the joy of plumbing, painting and yard work, you now have new tax considerations.

Let’s face it, if we could claim the cat or the dog, we would, but we can’t. So let’s take a look at just a few deductions that you can legally take.

• Mortgage interest: Your biggest tax break is reflected in the house payment that you make each month. For the first 5-7 years, most of your payment goes toward the interest. And most of that interest is deductible, unless your loan is more than a million dollars. This deduction makes a monthly payment to be realistically hundreds of dollars less when you use your deduction. This can sometimes be cheaper than renting! And, you can build equity for a future sale or money for college or retirement.
  
• Equity loans and lines of credit: These too charge interest that you can write off, of course through IRS guidelines. Use the money for home improvements or other needs.
• Investment property: Save those receipts! Use them to show the IRS that you spent money for repairs and improvements. If you plan on selling that multi, just remember that you can deduct much of the bills from the capitol gains pains by providing proof of expenses for up to two years prior to the sale in order to prepare the property for sale.
• Before you attack the 1090 and Schedule A, I highly recommend you seek the knowledge of a CPA or professional tax preparer for those details can get very “taxing”.

Here is a perfect example of a tax deduction that you can live in!

This charming three-bedroom Woonsocket home is located just up the street from Landmark Hospital and has easy access to major highways. It features 3 bedrooms, 6 rooms, an oversized 2-car garage and a separate shop for the hobbyist or a great place to play cards or music. Whatever is your passion. Priced affordably at $149,900, and a down payment grant is available if you qualify. That means no money down!