It’s no surprise that owning a home automatically opts you
into a new realm of tax advantages. In fact, in a recent survey of people who
bought homes in 2012, 79 percent said the mortgage interest and property tax
deductions were "extremely important" factors to their decision to
become homeowners in the first place.
But these two deductions are just the tip of the iceberg of all the real estate-related tax guidelines, advantages and disadvantages. Because others get less press, it can be relatively easy for an individual American taxpayer to unwittingly trigger tax liabilities they might have been able to minimize or plan for, or to unwittingly trigger tax perks and fail to claim them.
This is why its essential to touch base with your tax pro before any and every real estate move you make, no matter how minor you think it might be. Sometimes planning and timing makes a major difference to the financial impact of a real estate-related tax; other times, just knowing the size and scope of the tax implications will impact the real estate decision you make.
Here is a short list of real estate moves that trigger surprising tax issues, pro and con:
But these two deductions are just the tip of the iceberg of all the real estate-related tax guidelines, advantages and disadvantages. Because others get less press, it can be relatively easy for an individual American taxpayer to unwittingly trigger tax liabilities they might have been able to minimize or plan for, or to unwittingly trigger tax perks and fail to claim them.
This is why its essential to touch base with your tax pro before any and every real estate move you make, no matter how minor you think it might be. Sometimes planning and timing makes a major difference to the financial impact of a real estate-related tax; other times, just knowing the size and scope of the tax implications will impact the real estate decision you make.
Here is a short list of real estate moves that trigger surprising tax issues, pro and con:
