Liberty Rental Properties
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Liberty Rental Properties
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Tax Savings
· And don’t forget the fantastic tax incentives. It’s by far the biggest and best tax break for middle America.
· Collectively, home owners save nearly $100 billion annually on mortgage interest and property deductions alone.
· These tax incentives are designed to make owning a home more affordable.
· In most instances, all of the interest and property taxes you pay in a given year can be fully deducted from your gross income to reduce your taxable income.
· These deductions can result in thousands of dollars of tax savings, especially in the early years of the mortgage when interest makes up most of the payment.
· To look at this another way, if you are in the 30 percent tax bracket, you only pay 70 cents on the dollar in mortgage interest payments.
· Plus, the best tax break available to homeowners is when they sell their primary residence.
· A couple who own and live in their home for two years and then decide to sell can keep up to $500,000 of the profit tax-free. (A single owner can keep $250,000.)
· If the couple use these gains to buy a bigger home, and live in that home for at least two years, the same rules hold true when they go to sell again.
· This is one of the biggest tax advantages of homeownership and a great way to build household wealth.
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Liberty Rental Properties. Whether you're
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