Tax Benefits of Owning Columbia SC Real Estate
While there are many advantages to owning Columbia SC real estate, 
the tax benefits are some of the most important to consider. For decades, the Federal Government has incentivized homeownership through tax benefits that are not available to renters. These benefits not only help reduce the homeownership costs, but also the costs of buying and selling a home. In order for a homeowner to take full advantage of most benefits, you must itemize your taxes.
1) Mortgage Interest Deduction
The mortgage interest deduction (MID) is easily one of the best tax benefits available to homeowners. After searching, finding, and purchasing Columbia SC real estate for sale, a new homeowner is able to deduct all the interest paid on their mortgage payments. For the first few years of the loan, interest tends to be the largest component of the mortgage payment. Because of this, the MID is a very beneficial tax advantage to homeowners.
2) Property Tax Deduction
For income tax purposes, it’s possible to fully deduct the real estate property taxes paid on a first home. By taking advantage of these property tax deductions, a homeowner can effectively reduce their total tax burden. To learn more, check out Schedule A (Form 1040), line 6.
3) Capital Gains Exclusion
When considering Columbia SC real estate, it’s important for a buyer to develop a long-term plan that includes the capital gains exclusion. So long as a homeowner has lived in their home for two of the last five years, they can take advantage of the exclusion. Individuals can exclude up to $250,000, whereas couples can exclude up to $500,000. It’s possible to claim the exclusion once every 2 years.
Ultimately, there are a lot of tax advantages and benefits available to homeowners — the tricky part is finding them. For those who wish to learn more about these tax advantages and others, seek out a certified public accountant (CPA) or tax attorney to assess all the available options.
If you’re wanting to take advantage of the tax benefits of owning Columbia SC real estate in 2012, you’ll need to close on your home before December 31st. With the amount of time it’s taking many lenders to approve and close on a mortgage these days, the sand is seeping out of the hourglass for you to purchase and close in this calendar year.