1. Take Advantage of the MCC (Mortgage Credit Certificate) Program.
All qualified participants will receive up to $2000 dollar credit against the Mortgage interest of the House. This equates up to 60k in tax savings for the lifespan of your home. In order to qualify the home must be your primary residence or you couldn’t have owned a home the last 2-3 years For more info please Visit My New Home Programs.
2. Downgrade Your Home & Save BIG TIME
You can use the profits from the sell of your first home and apply them to a down payment on your future home. You are able to take the profits from your first home TAX Free. Depending on your filing status you can take home up to 500k profits from the sell of your home. You have to prove that you have been a residence for at least a couple of years.
You can deduct your property taxes paid for any number of property you own.
4. Rental Income
IF you rent out your residence for 14 days or less you don’t have to pay any taxes on the money you collected, no matter the amount. Due to the great law of depreciation if you rent out your home for additional income depreciation usually eliminates your capital gain and you get to pocket the money TAX FREE.
There are numerous advantages that you can take advantage of when buying real estate. You should discuss the opportunities with your spouse and tax consultant. With great Tax Planning you can find great ways to use the gov’t to put more money into your pocket. Most people have he attitude that the government is out to take all of their hard earned money. The way to avoid this is to do the things they incentivize you to do and you will save tremendously. There are amazing tips available at http://www.irs.gov and also visit My Community Services Facebook Page for great Tax updates and info.