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| | Robert Myers Maui Real Estate Blog
Real Estate Information for Maui, Hawaii | Perks of Maui Home Ownership
Maui homeowners have a definite advantage over renters this time of year
March 07, 2008 | Along with the pride and peace-of-mind that comes with owning your own Maui home in Paradise -- be it a West Maui Condo or an Oceanfront Kaanapali Home -- there are some additional perks to be enjoyed at tax time. April 15th is fast approaching, and Maui homeowners have a definite advantage over renters this time of year: If you completed your home purchase before December 31st, there may be some tax deductions you can claim on your 2007 taxes! If you are a first time homebuyer (or have not owned a home for at least three years), there may be some additional perks that can lower the costs of first-year homeownership by 35% or more.
INTEREST
A portion (or all) of the interest you pay each year is tax-deductible. The amount is dependent upon several factors, including your income, the overall amount of your mortgage, the type of mortgage, and whether or not your new West Maui home is your primary residence.
POINTS
Most simply put, "points" are the cost of your mortgage. Typically around 1% of the total loan for the cost of your home, points are deductible only in the year they are paid.
PROPERTY TAXES
State and local property taxes can be deducted (in the year paid) as an expense against income. Please consult a CPA to make sure you get it right when it comes to deductions, since IRS rules and details are confusing and frequently change. This article is intended to give you only a general sense of the tax perks are out there for Maui homeowners. |
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