Tax Benefits of Owning a New Home in Loveland, CO

There are several reasons why northern Colorado is experiencing a growth in families looking for new homes for sale in Loveland CO and Fort Collins . The thriving local community and proximity to outdoor adventures in the Rocky Mountains is enticing to anyone, but the added amenities and active lifestyle experience found at The Lakes at Centerra adds something even more special to living in northern Colorado along the front range.

While the spacious living areas and beautiful kitchens might be the first things that make you fall in love with the homes at The Lakes, it is also important to consider the tax benefits of owning a new home in Loveland, CO. Here are three ways that you can take advantage of savings through new home ownership during tax season:

• Deductions for mortgage interest. Homeowners who itemize their federal income tax deductions can deduct 100 percent of their mortgage interest payments on a first or second home, for up to $1 million of mortgage debt. You can find the total amount of home mortgage interest paid during the year by referring to your Mortgage Interest Statement Form 1098, which home owners receive from their lenders. Homeowners can also deduct the interest paid on up to $100,000 of home equity loans, which means most homeowners can deduct all of the annual mortgage interest paid on their home.
• Deductions for real estate property taxes. On an owner-occupied home, homeowners are also able to deduct the state and local real estate property taxes they pay each year.
• The capital gains exclusion for the sale of a principal residence. When it is time to sell a home, in many cases homeowners don’t have to pay capital gains tax on the profit from the sale. Under present law, married couples who have owned and occupied their principal residence for at least two of the past five years do not have to pay taxes on the first $500,000 in profits from the sale of their home, and single filers earn up to $250,000 tax-free.
• Mortgage insurance premiums. Generally, people who purchase a home without putting 20 percent down have to buy mortgage insurance, and those premiums can also be deducted from taxable income.

Buying a new home in Lovelandoffers tax savings that can add up to tens of thousands of dollars over several years, which is a significant financial consideration if you’re thinking about choosing homeownership over renting. Come visit us if you have other questions about the benefits of buying a new home at The Lakes or would like to take a tour our model homes.