Owning a home comes with big responsibilities, but it can also come with some pretty sweet pluses. For many Maryland residents, investing in real estate is a wise move. Owning a family home also has some definite positives when it comes to tax benefits.
Starting with the interest on a mortgage — the newer the loan, the more interest a homeowner will pay on the loan, so the tax deduction will also be higher. Property taxes of up to $10,000 can also be deducted as well as private mortgage insurance if a purchaser didn’t put 20 percent down on the property. But as of this year, they will only be available for those who itemize with a new tax law that almost doubles the standard deduction.
Homeowners who make energy-efficient upgrades to their residences with solar electric and solar water heating are entitled to receive tax credits. There are certain limitations with which a lawyer or accountant may be able to help. Older homeowners may also be able to get help with the installation of helpful devices like wheelchair ramps and grab bars — those things which help a person to age in his or her own home.
There are also perks associated with interest on a home equity line of credit, which are usually used when cash is needed for things like college or a wedding. In any case, these are all issues with which a Maryland real estate lawyer can offer assistance. An experienced attorney may be able to point out areas to a client that offer some sort of financial plus and steer the client away from potentially costly mistakes.