Just owning a home of your own is reward enough for many people. Homeownership delivers daily joy to those who value privacy, elbowroom and the chance to remodel and customize as they wish.

But homeownership, a major financial commitment, can also be a sound money move.

Here are 5 ways a home delivers financial paybacks and tax benefits to an owner right along with the priceless dividends of happiness:

1. Savings every month

Monthly payments on a mortgage loan each month bring a homeowner greater equity in a home. This disciplined payment schedule amounts to a savings plan, building value over time. Unlike the rent check to a landlord, the monthly cost of a mortgage goes toward building a homeowner’s future, with each payment adding to your financial stability. In addition, historic appreciation rates for homes range from 2.5 percent to 3.5 percent annually, meaning on average the value of your home increases while the loan balance decreases.

2. Property taxes

Real estate taxes on your primary residence and a vacation residence may be fully deducted from your income taxes annually.

3. Home mortgage interest

The amount of interest you pay on a home mortgage loan is deductible on your income taxes each year. If you itemize, you can deduct interest on a mortgage of up to $1 million used to buy a home.

4. Home equity lines

You can deduct interest on a home equity loan or line of credit of up to $100,000 on your taxes. This is allowed even if you don’t use the loan for home improvements; you may shift credit card debt to a home equity loan, for example.

5. Capital gains exclusion

After living in your primary residence for more than two years, you can keep profits of up to $250,000 if you are single, $500,000 if you are married, when you sell. There is no guarantee that your home will increase in value, of course, but this deduction often favors those who live in their home for many years.

For more information on what you can and can’t deduct as a homeowner, drop by the IRS website for a handy list or consult with an experienced certified public accountant or tax preparer.

Before you can reap the tax advantages of owning a home you need to find one that’s right for you. Trust in the Inland Northwest’s most experienced real estate team: Coldwell Banker Tomlinson. CBT agents can help keep you focused on what’s important and guide you with smart strategies as you shop for and finance a new home.

Coldwell Banker Tomlinson, one of the largest real estate firms in the Quad Cities, completes one in three of all local real estate transactions. CBT professionals know the market and can help guide you through the competitive sales process to get the best returns.

No one sells more homes in the Inland Northwest.

Contact your nearest Coldwell Banker Tomlinson office today: Coldwell Banker Tomlinson in Lewiston/Clarkston, 208-746-7400; Coldwell Banker Tomlinson in Moscow, 208-882-0800; or Coldwell Banker Tomlinson in Pullman, 509-334-0562.

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