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Home ownership Benefits

The home you purchased is owned by you and therefore as a home owner you have an investment and equity as apposed to paying rent.   Deduction of interest on your income taxes. If you have “paid down” your mortgage this may or may not be of benefit, it may be more beneficial to take a standard deduction.  Provided you’ve lived in the home for at least three of the previous five years,, the IRS allows you to exempt the first $250,000 of gains in your home from capital gains taxes. If you’re married and file a joint return, you can exempt up to $500,000. That equity can go a long way toward enhancing your retirement. Combined with the leverage effect of borrowing money (your borrowing costs are usually tax deductible), you can magnify the benefit of the capital gains tax exclusion. Homes for sale in Cedar City are a good investment for your future.

 

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