Three Common Tax Misconceptions about Home Ownership Explained
One of the benefits of owning a home is the deductions that homeowners can use when filling out their annual tax forms. While there are several tax benefits to owning your own home, some of these benefits are greatly exaggerated and some of them are simply misconceptions that are untrue. Here are some of the more common tax misconceptions and exaggerations that are out there so you can be aware of them.
Misconception #1: The interest that I pay on my mortgage provides me with a tax break.
For the majority of homeowners, mortgage interest does provide a tax break which is unavailable to renters. But in order to take advantage of this break, a homeowner must itemize their taxes. This means that the combined individual deductions are more than the standard deduction that an individual would automatically get each year.