Tax benefits of renting? The only tax benefit that a renter can qualify for by virtue of being a renter is the home office deduction. This is a business deduction available to renters who own a business and have a home office they use regularly and exclusively for business purposes. Some employees can qualify for this deduction as well. The deduction is limited to the amount of profit earned from the business each year. If a renter pays a lot of rent, this deduction can be substantial. Homeowners who are in business and have a home office can also qualify for the deduction.
Of course, the value of the tax benefits of buying a home depends on the state the buyer lives in and his or her tax bracket. Buyers who live in high tax states like New York or California get the most benefit.
This is why the blanket statement "it's always better to buy than rent" is not always true. It all depends on the buyer's individual circumstances.
First things first: run the numbers. If you haven't run numbers before even "window-shopping" for a home, you are doing it backwards. Don't forget as we have talked about before, to have a pre-qualification letter before house hunting is a the way a buyer should be moving forward. Any lender is going to be extremely diligent and once you have received one pre-qualification, you should shop around to see what programs may be available and various fees for the amount of loan you need.
The extreme factors associated with being a pre-qualified home buyer (which can take a week to several months) is the sign of a serious opportunity for the buyers to great amazing deals on amazing properties and for the sellers to sell. Shortsales/bank owned properties always require a pre-qualifcation letter with any offers, when in fact this is the way it should be with every offer on any property.
Of course, the value of the tax benefits of buying a home depends on the state the buyer lives in and his or her tax bracket. Buyers who live in high tax states like New York or California get the most benefit.
This is why the blanket statement "it's always better to buy than rent" is not always true. It all depends on the buyer's individual circumstances.
First things first: run the numbers. If you haven't run numbers before even "window-shopping" for a home, you are doing it backwards. Don't forget as we have talked about before, to have a pre-qualification letter before house hunting is a the way a buyer should be moving forward. Any lender is going to be extremely diligent and once you have received one pre-qualification, you should shop around to see what programs may be available and various fees for the amount of loan you need.
The extreme factors associated with being a pre-qualified home buyer (which can take a week to several months) is the sign of a serious opportunity for the buyers to great amazing deals on amazing properties and for the sellers to sell. Shortsales/bank owned properties always require a pre-qualifcation letter with any offers, when in fact this is the way it should be with every offer on any property.
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