Basking Ridge Homes For Sale

If you’re thinking you can’t afford to buy a house, think again! Compared to renting, there are some real benefits to buying a Basking Ridge home. Below are some different things you can do to make your home affordable.

Real Estate Taxes

With real estate taxes you are allowed to deduct what you are paying on your home each year on income taxes. Pull out Form 1040 Schedule A and write down in the amount under “taxes you paid.”

Mortgage Interest

On Form 1040 Schedule A your income tax should be deducted each month under “interest you paid.”

Points

When buying a home, you can deduct any points you have paid on the mortgage loan on Form 1040 Schedule A. This also is the case when you are refinancing a mortgage loan and pay additional points.

Home Improvements

If you are taking out a loan to make home improvements to improve value or make it more efficient, you can deduct the interest on your taxes.

Home Office Deduction

When buying a home, use a room specifically as an office for business. You can deduct the percentage of your home that you use for business on your taxes, and include utilities and other home expenses on Form 8829 to keep things organized.

You may think that if your monthly rent is the same as a monthly mortgage payment, why be strapped to ownership? The above mentioned tax breaks are exactly why home ownership is the Basking Ridge real estate arena is so desirable.

Ask your accountant to run a comparison chart of buying versus renting and you will be amazed!

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