Tax Return Depressing? Owning a Home Could Help

Many Americans got some depressing news this week; either their tax return was not as large as they had hoped or, in some cases, they were told they owed additional money to either the Federal or State government or both. One way to save on taxes is to own your own home.

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.

Here are four items, and a quote on each, from the Briefing Book:

1. Mortgage Interest Deduction

“Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage. The deduction is limited to interest paid on up to $1 million of debt incurred to purchase or substantially rehabilitate a home. Homeowners also may deduct interest paid on up to $100,000 of home equity debt, regardless of how they use the borrowed funds. Taxpayers who do not own their home have no comparable ability to deduct interest paid on debt incurred to purchase goods and services.”

2. Property Tax Deduction

“Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.”

3. Imputed Rent

“Buying a home is an investment, part of the returns from which is the opportunity to live in the home rent-free. Unlike returns from other investments, the return on homeownership—what economists call “imputed rent”—is excluded from taxable income. In contrast, landlords must count as income the rent they receive, and renters may not deduct the rent they pay. A homeowner is effectively both landlord and renter, but the tax code treats homeowners the same as renters while ignoring their simultaneous role as their own landlords.”

4. Profits from Home Sales

“Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale. But homeowners may exclude from taxable income up to $250,000 ($500,000 for joint filers) of capital gains on the sale of their home if they satisfy certain criteria: they must have maintained the home as their principal residence in two out of the preceding five years, and they generally may not have claimed the capital gains exclusion for the sale of another home during the previous two years.”

Bottom Line

We are not suggesting that you purchase a house just to save on your taxes. However, if you have been on the fence as to whether 2017 is the year you should become a homeowner, this information might help with that decision.

Disclaimer: Always check with your accountant to find out what tax advantages apply to you in your area. 

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7140 S 68th Lane Laveen, AZ 85339

$488,900

4 Beds

2 Baths

2,477 SqFt

Status Active

MLS # 6662402

Property Type Single Family Residence

Price Type --

YOUR BUYERS ARE GOING TO LOVE THIS FLOOR PLAN! OFFERS PRIVACY & VERY OPEN*SETUP NICELY FOR SOMEONE THAT WORKS FROM HOME OR NEEDS EXTRA SPACE FOR CRAFTS OR WORKOUT AREA. THE MASTER SUITE HAS A SEPARATE LIVING SPACE FOR SOLITUDE*PLUS 3 ADDITIONAL BEDROOMS* ALSO DEN IN FT OF HOME*OPEN KITCHEN LOOKS OUT TO FAMILY ROOM* PLUS THE IS A FORMAL LIVING ROOM IN FT, OF HOME*THIRD CAR GARAGE SPACE THAT COULD BE USED FOR ANOTHER OFFICE/WORK/HOBBY SPACE! *RV GATE* *****THIS ENERGY STAR HOME HAS SOLAR, ADDED INSULATION, SUN SCREENS,TO KEEP YOUR ELECTRIC BILLS LOW**** WATER SOFTENER, REVERSE OSMOSIS!! BEAUTIFUL VIEWS OF THE ESTRELLA MOUNTAINS* WALK TO HORSE PATH*CLOSE TO SHOPPING & RESTAURANTES* NEAR THE NEW 202 MAKES IT EASY TO GET AROUND THE VALLEY!! BACKYARD LANDSCAPING GREAT FOR ENTERTAININ

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170 S Park Road Payson, AZ 85541

$488,765

3 Beds

2 Baths

1,650 SqFt

Status Active

MLS # 6679180

Property Type Single Family Residence

Price Type --

Are you looking for a Cabin in the woods? Look no further, this one is gorgeous! 3 bedroom, 1.75 bath, 1650 sq ft. split floor plan. Large master with separate exit to the back porch with updated shower & vanity. The other 2 bedrooms are very spacious as well & a large second bath with tile, tub & shower. Wait till you see the wood burning fireplace in the great room. The kitchen has also been updated with granite counter tops. The home has a workshop & storage shed. From the time you drive up to the home you'll feel the warmth & can see all the memories that can be made here. Pride of ownership, Very private, backs a wash, come enjoy the quiet & stars on the front & back porch. Play some horseshoes, sit by the fire pit or have a nice picnic just come and enjoy! You're going to love it!

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29181 N Yellow Bee Drive San Tan Valley, AZ 85143

$488,500

3 Beds

2 Baths

1,493 SqFt

Status Active

MLS # 6702338

Property Type Single Family Residence

Price Type --

Check this one out! Furnished home on the 6th hole of the San Tan Highlands Golf Course. Mountain views out front and golf course views in back. Lightly lived in 3BR/2Bth home has tile flooring throughout. Kitchen has granite counters, tile backsplash, stainless steel appliances, pantry and breakfast room. Also a breakfast bar with pendant lighting. Plantation shutters throughout except in secondary bedrooms. Primary BR has bay windows with views of the course and heated pool, walk-in shower, dual sinks, and walk-in closet. Living/Great room has French doors leading out to covered patio and pool area. Johnson Ranch has much to offer with 3 heated pools, tennis/pickleball courts, playgrounds, pitch and putt golf course basketball courts and a catch and release fishing pond.

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14801 W Via Montoya -- Sun City West, AZ 85375

$488,500

2 Beds

2.5 Baths

2,349 SqFt

Status Active

MLS # 6695137

Property Type Single Family Residence

Price Type --

Brand new roof underlayment installed May 2024! Not just a great value, but a perfect home for family gatherings or entertaining. This rare Truxton model features high ceilings, opened main living area...tastefully updated throughout! What makes this model so desirable is its split bedroom floor plan + separate office/den space, complete with a extra half bath, inside laundry room, plus bonus hobby room. The light & bright kitchen w/refinished cabinets, quartz-like Corian countertops features counter seating for 4. Spacious master bedroom w/ a bay window, 2 separate closets & dual sinks in the master en suite. Hard flooring throughout the entire house, no carpet. HVAC new 2020. HWH new 2023. Roof 2024. So much extra room on lot if you desire to add on, perhaps for another 2-car garage.

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San Tan Valley AZ 85143

$488,000

5 Beds

3 Baths

3,331 SqFt

Status Active

MLS # 6704248

Property Type Single Family Residence

Price Type --

Welcome to your New Home! 5-Bedroom, 3- Full Bathrooms, Huge Home 3330 Sf*** The Home includes many Upgraded features , Granite Counter-tops in Kitchen. Ceiling Fans, Blinds Throughout, New Flooring that Extends throughout Downstairs Floor. A Massive Loft upstairs. Each Bathroom in the Home Reflects thoughtful Updates. Large Bedrooms. 3 Car Garage with Service Door. Alarm System, Whole House Water Filtration. Step into The Backyard Perfect for Hosting Gatherings, Features a Large Bar Area with Grill, sink, Fireplace...

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3183 N Pinewood Drive Pine, AZ 85544

$488,000

2 Beds

1 Bath

1,256 SqFt

Status Active

MLS # 6670429

Property Type Single Family Residence

Price Type --

ENJOY, this Turn Key Cozy Cabin in the Woods that offers Plenty of Privacy and Space for your Family and Friends. This Cozy Cabin can be used as a Great Getaway Retreat, Airbnb, or a Place to call Home. The Remodel Includes - Throughout updated Electrical and Plumbing, Quartz Countertops, Kraft Maid Cabinetry, Tankless Hot water heater, Plus so Much More. Within Walking Distance to Local Restaurants/Entertainment and Shopping. Sit and Enjoy Star Gazing in front or on your Spacious Deck in back to watch the Elk that graze almost Daily. Furniture Included, New Kitchen Table and Stools, Double Chaise Lounger and matching Chairs, Loft Armoire, Queen bed, and Nightstand, Dresser, and Recliner Chair. Property is Sold with Adjoining Vacant LOT in back with 30' Easement Rights. PARCEL# 30166216A

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15452 W Jefferson Street Goodyear, AZ 85338

$488,000

4 Beds

3 Baths

3,001 SqFt

Status Active

MLS # 6644924

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the heart of Goodyear! This stunning residence in the sought-after Centerra community is a true gem, offering a perfect blend of comfort, style, and space. Boasting 4 bedrooms and 3 baths, this 3001 sq-ft home is designed to accommodate the needs of modern living. The spacious and well-appointed kitchen is a culinary enthusiast's delight, featuring marble counter tops, high-end appliances, and a layout that makes entertaining a breeze. The den provides a versatile space for a home office or a quiet retreat, while the bonus room adds an extra layer of flexibility to suit your lifestyle. Whether you're hosting family gatherings, game nights, or simply enjoying quiet evenings at home, this residence offers the perfect backdrop for creating lasting memories. The master suite is a true sanctuary, offering a peaceful haven with its own private bath. The additional bedrooms are generously sized, ensuring comfort for family members or guests. With three baths, mornings and evenings are streamlined for convenience and ease. Beyond the walls of this exquisite home, the Centerra community provides a welcoming environment with scenic views and an array of amenities. From the Goodyear Recreation Center, parks and trails to nearby shopping and dining options, this neighborhood offers a vibrant and convenient lifestyle. **The seller to include the Shield Essential Home Warranty plan with American Home Shield.**

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3519 W Morgan Lane San Tan Valley, AZ 85144

Open House

$488,000

4 Beds

2 Baths

2,197 SqFt

Status Active

MLS # 6648914

Property Type Single Family Residence

Price Type --

Welcome to your dream property where elegance meets functionality. This home features a sleek neutral color paint scheme that enhances the ambiance. The primary bathroom offers a spa-like experience with a separate tub, shower, and double sinks. The kitchen boasts stainless steel appliances, a stylish backsplash, and a spacious island for convenient meal preparation. Outside, you'll find a covered patio for private leisure, a fenced backyard for security, and a private in-ground pool for endless summer fun. The home has undergone partial flooring replacement and a fresh coat of interior paint, adding to its appeal. This property is designed to blend style and comfort, offering you a rejuvenating haven for the best lifestyle experience.

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20162 W Exeter Boulevard Buckeye, AZ 85396

New

$487,995

4 Beds

2 Baths

2,270 SqFt

Status Active

MLS # 6707194

Property Type Single Family Residence

Price Type --

The ranch-style Augusta offers thoughtfully designed living space with a range of personalization possibilities. The foyer leads to an open floor plan with a kitchen, a great room, a dining room and a covered patio. Looking for extra space for entertaining? Add a club room and an extended covered patio! You'll find a spacious owner's suite next to the dining room, showcasing a walk-in closet and an attached bath that can be personalized with three deluxe options. This plan also offers two bedrooms and a bath; for more space, choose another bedroom in lieu of garage storage. Additional options include gourmet features in the kitchen, alternate kitchen layout, a corner-meet door in the great room, multi slide and center meet door options.

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20048 W Exeter Boulevard Buckeye, AZ 85396

$487,995

3 Beds

2 Baths

1,940 SqFt

Status Active

MLS # 6663846

Property Type Single Family Residence

Price Type --

The ranch-style Augusta offers thoughtfully designed living space. The foyer leads to an open floor plan with beautiful Gourmet Kitchen a dining room and Great room with center meet doors leading to a covered Patio. Home offers split floor plan with 2 bedroom and a full bath. Laundry room is in middle of home. The lavish Primary Suite is on opposite side of house for privacy, with a beautiful bathroom and walk in closet. This home offers Tankless water heater, soft water loop, gas stub at patio and pre plumbed for sink at laundry room!! Don't miss this one!!

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5509 N 194th Avenue Litchfield Park, AZ 85340

$487,990

3 Beds

2 Baths

1,630 SqFt

Status Active

MLS # 6693780

Property Type Single Family Residence

Price Type --

Brand new open-concept, well designed home has the perfect amount of space to in all the right places. This single level home offers 3 bedrooms, open study, 2 bathrooms, and 2 car garage with private yard and room for a pool! The owner's suite has an impressive walk-in shower with custom tile surrounds and very large closet with lots of shelving for storage. You'll be dazzled by the gourmet kitchen and stainless-steel appliances with gas cooktop in your gourmet kitchen, upgraded cabinets and countertops with custom backsplash, upgraded flooring throughout are just some of the custom choices that make this home a must see. 2X6 construction and extensive new home warranty.

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41094 W Haley Drive Maricopa, AZ 85138

$487,990

3 Beds

2 Baths

1,987 SqFt

Status Active

MLS # 6400951

Property Type Single Family Residence

Price Type --

START PACKING... It's the stunning Belice - 12x8 sliding glass door that leads out to your extended covered patio. Large walk-in shower at Owner's bath and ceramic tile surround., Designer gas appliance package, Maple ''Linen cabinets with 42'' upper kitchen cabinets and upgraded hardware. Evening Gray quartz countertops in kitchen and on the enhanced kitchen island. 8' tall interior doors throughout home. Upgraded flooring includes level 9 carpet in all bedrooms/closets and Norwood Oak 6x24 floor tile in remaining areas of the home. Dual sinks at bath 2. We're also adding in the pre-plumb for soft water, interior ''Gray'' two tone interior paint, garage service door and much more. Water Company is Santa Cruz Water Company and Sewer is Palo Verde Utilities Company. Please verify all information with onsite agents.

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