Tax Return Depressing? Owning a Home Could Help

Tax Return Depressing? Owning a Home Could Help | Simplifying The Market

Many Americans got some depressing news this week; either their tax return was not as large as they had hoped or, in some cases, they were told they owed additional money to either the Federal or State government or both. One way to save on taxes is to own your own home.

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.

Here are four items, and a quote on each, from the Briefing Book:

1. Mortgage Interest Deduction

“Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage. The deduction is limited to interest paid on up to $1 million of debt incurred to purchase or substantially rehabilitate a home. Homeowners also may deduct interest paid on up to $100,000 of home equity debt, regardless of how they use the borrowed funds. Taxpayers who do not own their home have no comparable ability to deduct interest paid on debt incurred to purchase goods and services.”

2. Property Tax Deduction

“Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.”

3. Imputed Rent

“Buying a home is an investment, part of the returns from which is the opportunity to live in the home rent-free. Unlike returns from other investments, the return on homeownership—what economists call “imputed rent”—is excluded from taxable income. In contrast, landlords must count as income the rent they receive, and renters may not deduct the rent they pay. A homeowner is effectively both landlord and renter, but the tax code treats homeowners the same as renters while ignoring their simultaneous role as their own landlords.”

4. Profits from Home Sales

“Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale. But homeowners may exclude from taxable income up to $250,000 ($500,000 for joint filers) of capital gains on the sale of their home if they satisfy certain criteria: they must have maintained the home as their principal residence in two out of the preceding five years, and they generally may not have claimed the capital gains exclusion for the sale of another home during the previous two years.”

Bottom Line

We are not suggesting that you purchase a house just to save on your taxes. However, if you have been on the fence as to whether 2017 is the year you should become a homeowner, this information might help with that decision.

Disclaimer: Always check with your accountant to find out what tax advantages apply to you in your area. 

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8874 E Flathorn Drive Scottsdale, AZ 85255

$1,275,000
3 Beds
2 Baths
2,003 SqFt
Status Active
MLS # 6729431
Property Type Single Family Residence
Price Type --
NEW PRICE!!!Highly desirable DC Ranch location! Wonderful single level patio home in gated community, surrounded by open space & beautiful homes w/all the great DC Ranch amenities! Recently refreshed w/new paint & wood floors in bedrooms. You'll love the great rm floor plan/totally open to kitchen & dining rms. High ceilings add to the openness of this home. You'll love the kitchen w/it's huge island/granite counters & gorgeous custom alder cabinets/gas range/wall oven & microwave/sub zero fridge & walk in pantry! 3 split bedrms / lg master suite w/exit to yard/double vanity & 2 walk in closets/separate tub & shower/Murphy bed in 2nd bdrm/Built in desk in hallway/ nice laundry room w/sinks & lots of storage/ Solid alder doors/Private yard W/spa &/water feature./Built in BBQ/2 car garage. HOA fee includes access to the DC Ranch amenities.

5713 W Rowel Road Phoenix, AZ 85083

$1,275,000
5 Beds
4.5 Baths
4,796 SqFt
Status Active
MLS # 6729792
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the prestigious Stetson Valley! This spectacular hillside residence boasts breathtaking views of Ludden Mountain and offers privacy, making it an oasis in the desert. Outside, indulge in resort-style living with a sparkling heated pool with a large, covered patio. Built-in misters ensure comfort on sunny days. The motorized solar shades and an electric awning expand your outdoor entertainment options. A convenient full bathroom with exterior access completes the poolside amenities. The large front patio, paved in travertine, features built in misters and is gated for your privacy. Step inside to discover a beautifully appointed interior featuring a spacious dining room with a butler's pantry, perfect for hosting your family and friends. see more.. Step inside to discover a beautifully appointed interior featuring a spacious dining room with a butler's pantry, perfect for hosting your family and friends. The large kitchen, with a walk-in pantry and huge island, opens to the great room, which is highlighted by a stacked stone fireplace. Upstairs, the expansive owner's suite beckons with a private sitting area overlooking Ludden Mountain. Recently renovated, the ensuite bathroom is a sanctuary with a free-standing tub, his and her vanities, and spacious closets. A large loft area offers additional living space, while a full-size laundry room with cabinetry adds convenience. Four additional bedrooms include a jack-and-jill bathroom, ideal for family or guests, and a fourth and fifth bedroom split by the spacious loft, overlooking the city lights, near an office nook for added flexibility. Don't forget to watch the hot air balloons from front balcony! The 3 car garages are split car and feature epoxy floors, extended length, built-in storage and EV charger. You will also find the 75 gallon water heater and whole house filtration. This home is not just about luxury, but also functionality with modern upgrades including an EV charger, solar system, exterior ceramic paint for energy efficiency, solar shades, and updated AC. Recently refreshed interiors with fresh paint complete the picture of this well-maintained property. Experience the pinnacle of Arizona living in this home, where every detail has been carefully considered for comfort, convenience, and style. Don't miss your chance to own this exceptional residence in one of Phoenix's most desirable neighborhoods.

73 W Lewis Avenue Phoenix, AZ 85003

$1,275,000
3 Beds
3 Baths
3,156 SqFt
Status Active
MLS # 6750614
Property Type Single Family Residence
Price Type --
Welcome to Willo!! Discover this enchanting 3 bedroom, 3 bathroom Bungalow in the Willo Historic District, a testament to architectural grace and modern comfort. Built by A L Johnson in 1925, this home spans a generous 2492 sf + a 664 square foot basement. The property also includes a detached two-car garage. The home's facade boasts classic design elements such as river rock porch details and decorative trim, meticulously preserved to honor its historical significance. Step inside to a world where heritage meets contemporary living, highlighted by a mix of newly refinished hardwood, tile, and carpet flooring that complements the abundance of natural light and exquisite details found throughout. A large front porch welcomes you, leading to a versatile flex roo ideal as a study or office adjacent to a formal living room with a striking brick fireplace. This opens to an elegant dining room adorned with stunning stained glass windows, creating a perfect backdrop for memorable gatherings. The kitchen is a chef's delight, equipped with stainless steel appliances and ample storage. The family room is bright and airy, fostering a perfect setting for relaxation or entertainment. Upstairs, the master suite is a retreat within itself, featuring a remarkable window and ceiling design, a custom-tiled bathroom with dual sinks, walk-in shower, standalone tub, and two closets. Two additional bedrooms and bathrooms offer spacious and beautifully detailed accommodations. The basement is an ideal space for a den, home theatre, or game room, offering additional flexible living space. This amazing home even has all new windows. Step outside to a backyard oasis complete with lush landscaping, a swimming pool, spa, and pergola perfect for enjoying the outdoors in privacy and style. As one of the first historic districts, Willo is steps away from the light rail, incredible dining, culture and amenities Phx offer. This home was featured in the Willo Historic District Home Tour of 2024. It is not just a residence but a piece of history ready to be cherished by its new owners. Embrace the blend of historical charm and modern convenience in this truly gorgeous landmark home.

1615 W Mandalay Lane Phoenix, AZ 85023

$1,275,000
3 Beds
3 Baths
3,684 SqFt
Status Active Under Contract
MLS # 6662837
Property Type Single Family Residence
Price Type --
Amazing Mountaintop home with incredible mountain and city views! Located in the gated Moon Mountain Vistas community this 3-bedroom 3 bath with an additional office will take your breath away. The property is over 1 acre on a mountain, and includes indoor/outdoor living spaces, a custom outdoor BBQ center, and outdoor fireplace. The serenity of the newly updated infinity pool and outdoor entertainment area welcomes you and your guests as you enjoy the beautiful Arizona sunsets. The interior of the home has been updated with new appliances, new carpet and new paint. The roof and water heater have also been recently replaced. The only thing missing is you!

18381 N 93rd Street Scottsdale, AZ 85255

$1,275,000
4 Beds
3 Baths
2,563 SqFt
Status Active Under Contract
MLS # 6751337
Property Type Single Family Residence
Price Type --
Beautiful family home in the highly coveted DC Ranch community. This is one of the few homes in the neighborhood with a private lot that backs to a wash with views of the McDowell mountains. This 4 bedroom and 3 full bath home features gorgeous hardwood floors, stainless steel appliances, white kitchen and open floor plan. The backyard boasts a large heated pool/spa and brand new turf. Upstairs offers 2 guest bedrooms and a loft area for the kids. The spacious primary suite has a large walk in shower and balcony with unobstructed mountain views. This gated neighborhood features 2 large parks offering plenty room for outdoor play and gatherings. You will also have access to the DC Ranch community pools, tennis/pickleball courts, and fitness center. Conveniently located close to Market Street, DC Ranch Crossing, the 101 freeway, and world class restaurants, shopping, golf and hiking.

15410 N 60th Street Scottsdale, AZ 85254

$1,275,000
4 Beds
3 Baths
2,883 SqFt
Status Active Under Contract
MLS # 6766387
Property Type Single Family Residence
Price Type --
Welcome to your dream retreat in the magic 85254 zip code! This fully furnished, designer-crafted home is a thriving Airbnb with back-to-back bookings, making it an excellent investment opportunity! Just minutes from Kierland Shopping Center, you'll enjoy convenience and luxury in one package. Step inside to discover gorgeous modern finishes that create an inviting ambiance. The outdoor space is an entertainer's dream, featuring a sparkling pool, relaxing hot tub, and a putting green. Stay active on the sport court, perfect for basketball or pickleball. The large covered outdoor kitchen is ideal for hosting gatherings, while the kiva-style fireplace sets the scene for cozy Arizona evenings. Additional highlights include a spacious open layout, ample natural light, and luxurious bedrooms!

8861 W Hatfield Road Peoria, AZ 85383

$1,275,000
5 Beds
4 Baths
3,513 SqFt
Status Active
MLS # 6754452
Property Type Single Family Residence
Price Type --
Wow, just WOW! Incredible property with breathtaking mountain views! Be greeted by a great curb appeal w/manicured desert landscape, ample courtyard w/welcoming iron gate, and a sided 4-car garage w/paver driveway. Home exudes elegance throughout showcasing pre-wired surround sound, abundant natural light, a designer palette, and tasteful flooring - tile & wood in all the right places. Discover the thoughtfully laid-out open floor plan, making entertaining a bliss! The gourmet kitchen is a cook's delighting, featuring high-end SS appliances w/cooktop gas, beautiful staggered cabinetry, recessed & pendant lighting, a pantry, glass tile backsplash, and a big island with a breakfast bar. You'll love the separate family room paired with a fireplace, dry bar, & multi-sliding doors to the back Enter the large main bedroom to find outdoor access and a lavish ensuite that boasts dual granite sinks, a soaking tub, a shower w/dry-off area, & a walk-in closet w/built-ins. One secondary has its own bathroom for added comfort. But the true highlight is the spacious, RESORT-STYLE backyard! The space is an entertainer's dream, featuring a covered patio, well-lavers, putting green, play area, Pergola, misting system, gas fire pit, mature trees, horseshoe pit, and a sparkling pool w/spa combo for year-round enjoyment. This gem is a RARE find! Luxurious living at its finest!

7979 E Evening Glow Drive Scottsdale, AZ 85266

$1,275,000
3 Beds
3.5 Baths
2,800 SqFt
Status Active
MLS # 6696426
Property Type Single Family Residence
Price Type --
Truly a luxury home you don't want to miss. This impeccable 3 Bed/3.5 Bath Winfield home is move-in ready. Stylishly modern with custom renovations throughout. You will love the designer Kitchen with beautiful custom cabinets, pull-out drawers, stainless appliances and Quartz countertops and spacious island. The Owner's suite is bright and spacious with beautiful wood floors, separate entry to the patio, dual sinks and makeup vanity in the bathroom, modern roll-in shower, large linen closet and generous walk-in closet with beautiful custom closet system. Two ensuite guest rooms and a 3-car garage are an added benefit. Tile and wood flooring throughout. New roof in 2022. Solar panels offer remarkable electricity savings. Too many fabulous features to mention - please see Features Sheet

7298 E Brisa Drive Scottsdale, AZ 85266

$1,275,000 - 3Br/4Ba -  for Sale in Lot 19, Parcel B At Bellasera, Scottsdale
Open House
$1,275,000
3 Beds
3.5 Baths
2,826 SqFt
Status Active
MLS # 6780698
Property Type Single Family Residence
Price Type --
Experience luxury living in one of the most desirable models within the prestigious Bellasera community. This exquisite 3-bedroom, 3.5-bath home, complete with a casita and three-car garage, sets on a 19,000+ sq. ft. lot with north/south exposure. The property welcomes you with a private front patio in elegant Cantera stone, while the expansive back patio, also in Cantera stone, features powered sunshades and overlooks a meticulously landscaped yard with a new PVC underground watering system on a timer. The main house offers a spacious open-concept kitchen and family room with a cozy gas fireplace. The updated kitchen features stunning new quartzite countertops and soft-close cabinetry. The primary bedroom has been expanded to provide ample space, featuring windows with views of the patio and garden. Additional highlights include a second bedroom with bath and a versatile den/office that overlooks the front patio. The three car garage is equipped with built in cabinets and epoxy flooring, ensuring ample storage and convenience. A standout feature of this property is the separate casita, accessible through its own entrance. This private space offers a comfortable bedroom and full bath, ideal for guests or multi generational family members, ensuring they have their own quiet retreat. Bellasera's community amenities are unmatched, including a guarded gate, resort style swimming pool, spa, workout facility, tennis and pickle ball courts, hiking trails, and dog park. The community also hosts numerous monthly social events, fostering a vibrant and inclusive atmosphere. This home has been lovingly maintained and is truly move-in ready, presenting a rarer opportunity to enjoy luxurious living with outstanding community features.

895 W Tyson Street Chandler, AZ 85225

$1,274,000
4 Beds
3 Baths
2,714 SqFt
Status Active
MLS # 6736767
Property Type Single Family Residence
Price Type --
Location, Location, 5 min walk to Downtown Chandler - one-of-a-kind property. Stunning 4-bedroom home, plus a Casita, AIRBNB or a 5th bedroom/ Office, NO HOA restrictions. Minutes from 21 medical facilities. Large lot, with Fruit trees, pool and hot spa, Casita and separate building workshop The home boasts 19 feet of gorgeous Anderson windows across the front, flooding the interior with natural light, and a freshly painted exterior. Experience year-round comfort with York 21 SEER AC and a heated spa and poolperfect for unwinding or hosting unforgettable gatherings. Looking for something truly unique? You'll love the stone chimneys with 3 gas fireplaces, including one in the kitchenyes, a cozy kitchen fireplace in Arizona! The open-concept layout is designed for entertaining, with a living room, modern glass railings, and original built-ins that add a vintage touch to the modern upgrades. Every bedroom features a walk-in closet with custom shelving and shoe racks, ensuring ample storage. The extended air-conditioned garage is perfect for large trucks, the garage doors are to the side, so the front view is free of a garage door and there's a separate workshop for your projects. The Casita provides a fun space for guests or family staycations and even some additional income. (not incl in sq ft) or a home office. Outdoors, you'll discover a mini orchard with fruit trees, including pecan, orange, lemon, almond, pomegranate, and two green apple treesa true garden sanctuary. As the sun sets, the home takes on a magical ambiance, glowing with warmth and inviting energy. This property combines modern amenities like a full home water filtration system, tankless water heater, central air vacuum, and more, with mid-century charm, designed by Tibshraeny, to create a sophisticated yet comfortable living experience. Don't waitthis earthy, modernist home with timeless appeal is calling you. Come see for yourself why this Arizona oasis is the perfect home! -Extended length and Air Conditioned Garage -Extra large driveway with turn about - plus space for a boat or small RV - Garage cabinets - additional inside storage and shelving - New lighting, new garage door motor - Fridges 2 big ones and 2 little ones - 4 Mini splits - kitchen, garage, back bedroom, and Casita - Casita sq ft is not included in home size of 2714sqft - Home has central vac system - Large front patio to host - Original front door, solid from 1960 - Block home with South and east sides being insulation and radiant barrier then wood batten - 21 seer York AC and new air handler - Whole home water filtration - Tankless with hot water recirculation - New Gas meter - New 2phase pool pump with heater to spa as well - 4 electric boxes, main, workshop, casita, and one in garage - 2 Equator Washer/dryers - single unit for Casita and one for home - Casita conveys as shown - ready to rent - king bed, outside furniture, linens, micro, coffee pot, TV, as you see it - Casita has new tile flooring, shower door and water heater moved outside - with pad raised ready to build outward and upward - Home furniture would be included if its the right price, jukebox and art work do not convey - but outside patio furniture, inside beds, TV's, Dining room buffet - table chairs - all of it - Primary bedroom has Warmly floor heating - all new plumbing, white bathroom dresser all convey - 2 bathrooms are Toto and other is Swiss Madison - 4th bedrooom, wall bookcase is attached and stays - Family room steel glass desk can stay - or it can be removed - If removed you would have three fireplaces one in the kitchen, the TV family area and one in the front living room - Kitchen base cabinets are 1960's with honed Quartz on tops - the bases are one of a kind with strong pullouts and shelving - 19ft of Anderson windows in the front - Krasiva windows for the other 11 and 2 sliding doors, then 3 Jen Wen sliders to enclose the sun/gym room - Gym equipment can stay - All inside doors (11) have been replaced by Sarto doors and Frames imported from Italy and hardware from Germany - We would like one of the outside table and chairs, whichever, orange is our favourite - then there is the white and small black - Chop saw and spray painter unit they go - a gift from my hubby - But blowers, whippers, lawn mowers they all stay - Of the 6 shovels I will take one and one rake - hoses all stay - Taxes are very reasonable annual $2,100. for 17,322 sq ft lot - Water bills for large lots can be upward of $600.00 a month - This property has SRP flood irrigation, at $190. for 2024 year - APS was $353.00 for October and Chandler water for home is $75.00 a month - TMobile for high speed internet $55.00 monthly - Pool maintenance including chemicals is $126.00 a month for weekly service - Home is under one year coverage for you - However I do have contractor names if you want them - Questions just have your agent reach out to me 🙂

7678 E Starla Drive Scottsdale, AZ 85255

$1,274,000
4 Beds
3 Baths
2,941 SqFt
Status Active
MLS # 6779375
Property Type Single Family Residence
Price Type --
Forever Home or Investors Dream. Beautiful single-level home in the gated community of La Vista in North Scottsdale. Perfectly positioned for easy access to dining, shopping, and the 101 freeway, you're just 15 minutes from Scottsdale Quarter and Kierland Commons. Walk into profit with this Vacation Rental Super Host with $25K+ in bookings through April 2025!! 2024 YTD Gross Earnings totaling nearly $100K+ Spacious home features 4 bedrooms, 3 baths + flex space, arranged in a functional split floorplan. Boasting 12' Foot ceilings and dripping in natural light. Large bright, white kitchen with island. The backyard features a heated saltwater pool, small gated dog run & custom outdoor BBQ island with green egg, perfect for entertaining.

4210 E Desert Vis Trail Cave Creek, AZ 85331

$1,269,999 - 4Br/4Ba -  for Sale in Saguaro Trails, Cave Creek
Open House
$1,269,999
4 Beds
3.5 Baths
3,558 SqFt
Status Active
MLS # 6614047
Property Type Single Family Residence
Price Type --
Homesite 1-SpurCross-This home includes the multi-generational living with the great room and bedroom 2 suite. Complete with a kitchenette featuring an eat-in kitchen island and washer/dryer/fridge hook ups and walk in shower in lieu of tub/shower, it's a private apartment within the home. Other options included in this price are vaulted ceilings with beams, exterior stone, laundry room sink, 15' multi-slide doors in great room, and bbq gas preplumb. The upgraded finishes include hardwood flooring, quartz countertops, upgraded cabinets, and bathroom surrounds. Upgraded kitchen appliances include double ovens, built in microwave, chimney hood, and 36'' cooktop.

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