HOMEOWNERSHIP TAX ADVANTAGES

  

Buying a home is one of the smartest purchases you can ever make. One reason is that homeownership has many positive tax implications. The three most important sources of tax savings for home owners are the:
 
* deductions for mortgage interest
 
* deductions for real estate taxes

* capital gain exclusion for the sale of a principal residence 

The deductions for mortgage interest and real estate taxes reduce the annual cost of homeownership by reducing the home owner’s tax liability each year.  Home owners who itemize their taxes can deduct from taxable income interest allocable to a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans.  And most state and local taxes paid on homes are also deductible.

When the home is sold, the capital gain exclusion can again provide home owners a tax benefit.  Under present law, sellers of a principal residence can exclude from taxation profits from the sale of a home, up to $500,000 for married taxpayers and $250,000 for single taxpayers.  With capital gain tax rates expected to increase from 15 to 20 percent in coming years, these tax savings can be substantial.

Research by economists at the National Association of Home Builders, of which Chesapeake Homes is a member, estimated the tax savings for home owners for certain income and mortgage amounts. For a married couple with an income of $80,000 per year and an initial mortgage amount of $250,000, the tax savings from the mortgage interest and real estate tax deductions are estimated to save the couple more than $11,000 in the first five years of homeownership.  Assuming the couple owns the home for twelve years, these savings grow to more than $25,000 over the time period. Combined with the capital gains exclusion, the total tax savings for the entire period of ownership exceeds $52,000.  For a couple with an income of $60,000 and an initial mortgage of $180,000, the five years tax savings total more than $6,000 and the total savings over a twelve year period are estimated to be more than $33,000.

Learn more about the tax and other benefits homeowners enjoy by visiting one of Chesapeake Homes' communities today - we'll be happy to share the good news with you!

Source:  National Association of Home Builders, www.nahb.org, Copyright, 2011

Free Homebuying Seminars Offer 

Great Information Without Obligation 

We at Chesapeake Homes understand how much thought goes into the process when considering a new home purchase.  What can I afford?  What kind of loan can I qualify for?  What are the benefits of buying a home now vs. waiting? All of these questions and many others can be answered at our Free HomebuyingSeminar which we host twice monthly.
 

On the first and third Thursday evening of every month, we are proud to host these unique seminars designed to allow you to get the answers you are looking for in a relaxing, no-obligation setting.  Each seminar begins at 6 p.m., and is scheduled to include a brief overview of the market and steps to consider when buying a home.  A question & answer session will close out the hour allowing you ample opportunity to get the answers to any question you may have about the process.
 

A loan officer from Tidewater Mortgage Services Inc. (Chesapeake Homes' preferred lender) will be on hand to offer free pre-qualifications and free credit reports & appraisals.  Plus, each person attending will receive a certificate for $1000 in Free Builder Options to be used on a future Chesapeake Homes' purchase.
 

Come join us on a night that suits your schedule - simply register on our website, but clicking here.  Select the evening and seminar location that works best for you, then mark your calendar and come on out... Our models will be open late for tours, and we'll even provide pizza and refreshments for all attendees. Hope to see you at our next FREE Homebuying Seminar!