1st Loan Modification of America reports that owning a home incurs some significant tax advantages. Here is 1st Loan Modification of America’s advice on how homeowners can make this investment work to their advantage.
1st Loan Modification of America reminds Americans that the Obama administration recently extended a tax credit to all first-time homebuyers, or anyone who hasn’t owned a home in the last three years. Originally scheduled to expire on November 30, the credit is now accessible to homebuyers who close by June 30, 2010. 1st Loan Modification of America notes that the tax break has been broadened to include anyone who has owned their current home for five consecutive years out of the last eight and is now buying a new one.
The income limits to qualify for this credit have also been raised, explains 1st Loan Modification of America. For homes purchased after November 6, 2009, the credit is open to those with modified adjusted gross income under $125,000, or under $225,000 for those who are married filing jointly. However, 1st Loan Modification of America notes that existing income limits do continue to apply to home purchases before November 6, 2009.
In addition to temporary credit, 1st Loan Modification of America reminds homeowners that it is allowable to deduct the interest paid on a mortgage that is below $1 million, as well as any property taxes paid. In addition, 1st Loan Modification of America reports that homeowners can deduct the interest on home-equity loans that amount to less than $100,000.
Before signing a contract, 1st Loan Modification of America advises individuals to ensure that income will cover the costs of home ownership, including not only the monthly mortgage, property taxes and insurance payments, but also the maintenance and repair expenses that may arise. In conclusion, 1st Loan Modification of America does not promote a tax break or any other incentive as justification for buying a home that is not affordable.
For more information contact 1st Loan Modification of America, LLC at 702-227-9660 or email 1st Loan Modification of America at modifications@1stloanmodificationnow.com.