Tax Aspects of Buying and Owning a Home

One of the big reasons for buying a home is the tax break. Uncle Sam, in effect, subsidizes your mortgage. Couple that with the consistent appreciation of homes, and you have a financial advantage that’s hard to ignore.

Another important tax aspect is property taxes. You pay them indirectly when you rent because the landlord includes them in the rent. If your landlord’s building is reassessed and the taxes increase, your rent will go up either next month or at the next lease renewal. In this sense, landlords don’t pay taxes, the tenants do. Anytime taxes or other costs go up, the landlord has no other choice but to pass these costs on.

Unfortunately, there is no escape from the tax man. But, at least when you own your home, taxes become an additional deduction. Still, you want to keep them as low as possible,