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Hey everyone, thanks for joining us today. I am here today with my CPA, Michael Nelsen. I asked my clients to send me some questions that I could ask Michael about taxes and real estate, and we are excited to share some of them with you today. What are the financial benefits of being a homeowner?
One of the biggest benefits is that you can itemize your tax return. Most people take the standard, fixed deduction, but when you own a home, you have the option for an itemized deduction. The itemized deduction is based on medical expenses, charitable contributions, property taxes, mortgage interest, and mortgage insurance. If your itemized expenses are higher than your standard deduction, you get that deduction. If it's lower, then you just get the standard deduction, and a lot of wasted time. Most people don't take the itemized deduction unless they are paying mortgage insurance.
What are the benefits of purchasing a rental?
With rentals, you get two things. First, someone is paying for your mortgage, at least partly. The second thing, is that all expenses related to the home are deductible. Typically, most rentals produce losses so it's basically tax free money to you and you are reducing your taxes. We should all have as many rental properties as possible.
If you have any questions for Michael, please give him a call at (480) 582-0452 or visit his website in the link above!
If you have any questions for us, just give us a call or send us an email. Talk to you soon!
Teaser: Many people aren't aware, but there are numerous tax related benefits to owning a home. We have invited our CPA, Michael Nelsen, to join us today and talk about these benefits. If you own a home, you can choose an itemized deduction instead of the standard deduction, which translates to more money in your pocket. To hear from Michael about the financial benefits of owning property, watch this short video!
