Chapter 25
Real Estate and Taxes
IN THIS CHAPTER
Dealing with home ownership and home-buying tax breaks
Making decisions about mortgages taxes
Knowing strategies for keeping the IRS at bay when selling your house
Finding tax considerations when investing in real estate
Tax benefits are a significant reason why many people, especially people in the real estate business — such as real estate agents, bankers, mortgage brokers, and others in the lending business — advocate property ownership.
Buying a home or investing in real estate can provide financial and psychological rewards. And tax breaks can help reduce the cost of owning real estate. On the other hand, purchasing and maintaining property can be time-consuming, emotionally draining, and financially painful.
Surveying Real Estate Tax Breaks
Just as contributing money to retirement accounts (see Chapter 22) yields tax breaks, so does buying a home and investing in other real estate. The U.S. income tax system favors home and other real estate ownership because of the widely held belief that owners take better care of their ...
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