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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10585 E Crescent Moon Drive Unit 6 Scottsdale, AZ 85262

$3,795,000
4 Beds
4.5 Baths
4,562 SqFt
Status Active
MLS # 6781819
Property Type Single Family Residence
Price Type --
Welcome home to Privada, a highly sought after gated enclave adjacent to the Four Seasons Resort Scottsdale * This meticulously maintained custom single-level home offers 4 ensuite bedrooms * Intimate entry courtyard w/ gas fire-pit offers access to the main house and detached casita * Open great room offers massive sliding glass doors to both courtyard and the backyard w/ Troon Mountain and Pinnacle Peak views * South facing yard also features remodeled heated pool and spa, fireplace, built-in grill, covered patio, and complete privacy * Split master suite with sitting room & fireplace, dual vanities, and steam shower * Membership to the Four Seasons Pinnacle Club available, making you a permanent guest of Scottsdale's finest resort & all of its amenities (pools, spa, fitness, fine dining) just steps from your front door *

8808 E Sulky Circle Scottsdale, AZ 85255

$3,795,000
6 Beds
4.5 Baths
4,742 SqFt
Status Active
MLS # 6724345
Property Type Single Family Residence
Price Type --
Built in 2021 on 1.73 acres, this contemporary retreat is tucked in the tranquil, gated enclave of Pinnacle Peak Place. Spanning 4,742 SF, including a 550 SF guest house, the home was meticulously designed with contemporary finishes throughout. The gourmet kitchen is both stunning and functional, boasting high-end appliances, two dishwashers, and a hidden walk-in pantry. The open-concept great room features soaring ceilings, wood beams, and a spectacular wall-to-wall slider that seamlessly blends indoor/outdoor living. Enjoy breathtaking views of Pinnacle Peak from the resort-style backyard, which is beautifully landscaped w/ newly-added mature trees, a lighted, heated pool, integrated spa, deck jets, extensive covered patio w/ tongue-and-groove ceilings, built-in BBQ, fire pit, & turf. Located within 10 minutes of premier golf courses, hiking/biking trails, and upscale shopping and dining, this modern desert sanctuary offers luxury, comfort, and convenience.

8150 N 47th Street Paradise Valley, AZ 85253

$3,795,000 - 3Br/3Ba -  for Sale in Tatum Canyon, Paradise Valley
Open House
$3,795,000
3 Beds
2.5 Baths
4,952 SqFt
Status Active
MLS # 6721098
Property Type Single Family Residence
Price Type --
Nestled amidst the hillside within highly desired Tatum Canyon in Paradise Valley, this exquisite retreat boasts expansive views of Camelback Mountain, Mummy Mountain, the McDowells, Phoenix Mountain Preserve and city lights. Enjoy breathtaking sunsets and spectacular views from every single room! Upon entering, you are greeted by a grand foyer that leads into spacious and beautifully appointed living areas, media room, den, dining room, and contemporary gourmet kitchen featuring custom cabinetry with quartz countertops and massive waterfall island; each room capturing their own unique views. The upstairs primary suite is a sanctuary of tranquility, featuring a fireplace, private balcony, ensuite bath with a soaking tub, and exercise/yoga studio with expansive views that invite relaxation Two additional bedrooms feature an ensuite bath and offer versatility for guests or a home office. On the lower level you will find an extended garage with built In cabinetry and an attached hobby room with additional storage space. Outside offers the perfect setting for relaxing poolside, dining, entertaining guests, or simply soaking in the serenity of the surrounding landscape. A true entertainer's dream, with the perfect combination of indoor-outdoor living. Located in one of Paradise Valley's most coveted neighborhoods, this home combines the privacy and tranquility of hillside living with convenient access to upscale shopping, dining, hiking, and golf. Whether you seek a peaceful refuge or a place to entertain in style, this exceptional residence offers a rare opportunity to experience the ultimate in AZ living.

12347 E Gold Dust Avenue Scottsdale, AZ 85259

$3,795,000 - 5Br/6Ba -  for Sale in Emerald Hills, Scottsdale
Open House
$3,795,000
5 Beds
5.5 Baths
5,196 SqFt
Status Active
MLS # 6689294
Property Type Single Family Residence
Price Type --
**DAYS ON MARKET INCLUDE CONSTRUCTION TIME* Welcome to Emerald Hills - your new seven home subdivision in north Scottsdale. Once again, Cachet Homes has hit a homerun with this luxury contemporary home and has all the amenities you could possibly want. With an attached guest house and detached pool house, oversized 4-car garage, north-south lot, with a south facing backyard boasting an amazing pool & spa - this one has it all! Cachet Homes finishes their homes with beautiful style and modern elegance and carry their commitment to handing you a truly turn-key home by having the landscaping and backyard finished and ready to use. Home next door is also for sale go to MLS#6646447 to see what is available now.

12220 E Alameda Road Scottsdale, AZ 85255

$3,794,995
3 Beds
3.5 Baths
4,365 SqFt
Status Active
MLS # 6749244
Property Type Single Family Residence
Price Type --
THIS OPPORTUNITY WON'T LAST, BUT THE VIEWS WILL! Move in Ready home on over 4 Acres. This beautiful pre-designed home with luxurious upgrades throughout. The award-winning Mayne home design was made for entertaining. This single level home showcases an open floor plan with elevated ceiling heights in the main living spaces. The gourmet kitchen is a chef's delight with upgraded cabinets and designer stainless steel appliances including a Wolf 48'' G Pro Range, 48'' Custom Decorative Kitchen Hood, JennAir Ice Maker, Sub-Zero 24'' Beverage Center, Sub-Zero 24' Wine Column, and a 30'' Column refrigerator and 30'' Column Freezer. Spacious great room features a 60'' Mezo fireplace and a 20' multi-stacking pocket door. Oversized bonus room with access to covered patio. Casita with living and bat

15 Sky Ridge Court Sedona, AZ 86336

$3,790,000
5 Beds
6 Baths
4,420 SqFt
Status Active
MLS # 6518168
Property Type Single Family Residence
Price Type --
Discover the beauty of Sedona's newest subdivision - Sky Ridge Estates! This hilltop lot offers breathtaking panoramic views of the North, East, and South. You have the option to build a custom home with three, four, or five en-suite master bedrooms. Plus, this exclusive location is only a short walk from the city's brand new park, museums, town square, high-end shopping and dining, spa resorts, and more. Enjoy the convenience of a lit tennis/pickleball court and Oak Creek front park available for membership. The seller is offering financing to qualified buyers, and they will even participate in the cost of grading, driveway, and pad once your home plans are submitted and grading permits are issued. Imagine waking up to picturesque views every day in your spectacular new home. This is one of the top/best premium five lots in the cul-de-sac end of the road. Very quiet and secluded, yet in the heart of Sedona, with a 10 walkability score. Below Market Pricing: Secure your slice of paradise with lots starting at just $329,000(half-off 8/23 appraisal of 495,000- 695,000 as improved (when road and utilities are completed) Build Your Dream: Opt for our innovative rustic contemporary, metal, and ceiling-to-floor glass eco-friendly landscape homes, designed for efficiency and elegance. Cantilevered on pillars vs old style expensive cut and fill pad or retaining wall, See renderings under the photo tab. Unparalleled Views, Privacy, very quiet & secluded: 19 Exclusive Lots: Each lot, ranging from half to three-quarters of an acre, offers breathtaking panoramic views along a serene ridge down and through a hidden canyon. Investment & Lifestyle Flexibility: Luxury Living Redefined: Sky Ridge Estates isn't just a place to live; it's a lifestyle. This 5-star resort community offers: *Private Club & Fine Dining (room service): Experience culinary delights without leaving the comfort of your community. *Wellness & Leisure: State-of-the-art anti-aging spa, fully-equipped gym, yoga studio, indoor climate-controlled pickleball court, and a golf simulator. *Concierge & Transport: Enjoy the convenience of concierge services, a Mercedes limo van for all your travel needs, and 24-hour security guard and cameras. *Resort-Style Property Management: Travel a lot? 2nd Home? On-site property management is available. *Infrastructure is underway, and roads and utilities are being installed. The clubhouse and gate are pending approval. Collaborate with our top architect and builder to bring your vision to life. Contact us for more details on this unique opportunity. Look under photos and website for home renderings and drone footage of each lot. Don't miss out on this chance to invest in a lifestyle of luxury and tranquility at Sky Ridge Estates. Recent Sold Comps; 920 N Palisades,.73 ac,COE 10/23 for 525,000 3 Sky Ridge Ct.,.63 ac,COE 1/24 for 500,000

12265 E Troon Vista Drive Scottsdale, AZ 85255

$3,779,995
5 Beds
5.5 Baths
4,682 SqFt
Status Active
MLS # 6668733
Property Type Single Family Residence
Price Type --
Don't miss this opportunity to live in Scottsdale's most desirable location, the picturesque, and award winning community of Sereno Canyon. Nestled against the McDowell Mountain preserve, with Sonoran desert views and close proximity to hiking trails. This open floorplan includes a casita with an exterior and interior entry, wet bar, and has enough room for bedroom and living space. The kitchen great room opens to a large covered patio with a 20' 90 degree corner door that pockets into the wall and brings the outside in. Chefs kitchen including two quartz islands for entertaining, SS Wolf Pro Line including a 48'' smart range, wall oven, and Sub-Zero 48'' side by side built refrigerator. 14' ceilings in the main living area. All bedrooms are en-suite with WIC. 10 year warranty included.

6321 E Phoenician Boulevard Unit 14 Scottsdale, AZ 85251

$3,775,000 - 3Br/4Ba -  for Sale in Ascent At The Phoenician Golf Villas Condominium, Scottsdale
Open House
$3,775,000
3 Beds
3.5 Baths
2,894 SqFt
Status Active
MLS # 6783633
Property Type Townhouse
Price Type --

Nestled in the shadow of Camelback Mountain at prestigious Ascent at the Phoenician, this exquisite golf villa offers an unparalleled lifestyle. Located on the first hole of the renowned Phoenician Golf Course, this guard-gated community features only 30 exclusive golf villas, each with a private two-car garage.

This stunning residence boasts three spacious en-suite bedrooms, complemented by a stylish powder bath and open concept floor plan making it perfect for both relaxation and entertaining. The villa's design emphasizes seamless indoor/outdoor living, highlighted by floor-to-ceiling stackable glass doors that frame breathtaking panoramic views of the lush golf course and the vibrant Phoenix skyline.

The heart of the home is the exquisite Bulthaup kitchen, where form meets function, featuring top-of-the-line Sub-Zero and Wolf appliances that cater to the most discerning chef. Ultra thin quartz counters, a large island with a raised walnut bar with seating for 5 and gorgeous oak veneered cabinetry evoke an inviting aesthetic. Spa-inspired bathrooms showcase luxurious marble and quartz surfaces, creating a serene retreat for relaxation.((With 10-foot ceilings throughout, the villa exudes an airy and open ambiance. Builder upgrades include elegant Provenza wood flooring throughout, an outdoor BBQ for alfresco dining on the oversized balcony, an elegant gas fireplace, a Sub-Zero wine refrigerator, and recessed LED lighting with dimmers in every room. The upgraded primary bathroom and thoughtfully designed cabinetry in the laundry room add to the home's sophistication. (Owner enhancements elevate this property further, featuring designer lighting, custom closets, and a state-of-the-art Crestron home automation system. Enjoy remote access to control lights, motorized shades on all windows, TVs, surround sound, HVAC and garage access from anywhere.((Residents enjoy exclusive access to the Mountain Club, a private retreat for owners at Ascent. The Mountain Club features a private pool and spa, a state-of-the-art fitness center, inviting social spaces, and a demonstration kitchen perfect for cooking classes and private chef experiences. Residents also have the opportunity for exclusive membership at The Phoenician Resort, which features multiple resort pools, resort spa, tennis courts, new Athletic Center, 18 hole Troon managed golf course and award winning restaurants. (Experience the epitome of luxury living in this exceptional golf villa, where every detail has been meticulously crafted for comfort and style. Schedule your private tour today and discover your new sanctuary in Scottsdale!((

15864 N 115th Way Scottsdale, AZ 85255

$3,775,000
3 Beds
3.5 Baths
4,285 SqFt
Status Active
MLS # 6746160
Property Type Single Family Residence
Price Type --
Elevated Extravagance! Ricci Renovations unveils another jewel within The Retreat at One Hundred Hills, a guard-gated community in McDowell Mountain Ranch. Views from every room, the transformation was just completed, ready for enjoyment & memories to be made. A freshly painted exterior w/ travertine entry leading up to the 12' arched wood front door provides a terrific initial impression. Upon entering, you immediately notice the new 10' sliders framing the new pool & majestic mountain views. The brand-new European oak wood floors are gorgeous & run throughout the main areas while hand-selected tile differs in each bath. The spectacular kitchen offers an all-new Thermador appliance package, Perlato Taj Satin quartzite counters waterfalling on 3 sides that sit atop rift oak & macaron green counters. The locally custom-made Supra Mat & textured laminate cabinetry bring warmth & luxury to this fabulous estate. The primary suite showcases a 14-light centerpiece pendant & a gas fireplace wrapped in matte charcoal tile with aspen logs. The primary bath is an oasis with floating cabinetry, Calacatta Maywood quartz counters, soaking tub, redesigned/oversized shower with his and her heads, all adorned with brilliance black onyx Brizo finishes. The closet is spacious, also with custom cabinets, plus there's a dedicated exercise room. The built on-site gas fireplace, 72'' linear open face with herringbone brick & glass bed, in the family room is a showstopper. It overlooks the city below providing the perfect gathering spot. Other features include a shiplap ceiling in the dining, a Chevron wall in the office, deco tile accent wall in powder & carbon reflective glass tile with light-embedded floating shelves on the bar. Both guest rooms have walk-in closets, ensuite baths with floating cabinetry, Ripieno satin quartz counters & faucets/showers with Brizo selections. The backyard is ideal, covered in silver storm travertine that surrounds an all-new sparking pool, spa, deco-tiled water feature wall, firepit, BBQ station & large turf area. The backdrop of city lights & the McDowell Mountains are incredible, day or night. The 4-car garage has all-new epoxy flooring & lighting. A new roof underlayment in 2023 has a transferrable lifetime warranty. HVAC units were replaced in 2012, serviced in 2024 & are in great working condition. 2 new water heaters & a water softener. The community has a heated pool & spa alongside 2 tennis courts. There are also 2 more community centers within MMR that offer pickleball, tennis, basketball, playgrounds, pools, hiking & biking trails as well as an aquatic center. North Scottsdale living at its finest.

19627 N 101st Street Scottsdale, AZ 85255

$3,775,000
5 Beds
5.5 Baths
4,533 SqFt
Status Active Under Contract
MLS # 6683085
Property Type Single Family Residence
Price Type --
This Canyon Villa, nestled within the prestigious guard-gated enclave of Silverleaf and masterfully crafted by the renowned Bing Hu, characterizes luxury living. Boasting 5 bedrooms and 5.5 bathrooms, 4,533 square feet, this residence offers a blend of sophistication and comfort. The expansive great room is accentuated by charming wood beam ceilings, creating an inviting ambiance that seamlessly flows onto the covered patio. Whether hosting indoor gatherings with friends or enjoying serene evenings outdoors while the sunset casts a golden glow over the McDowell mountains, this space offers spectacular views, making it the perfect setting for every occasion. Thoughtfully updated, this home features a Chef's kitchen, Bifold doors, new wood flooring throughout adds warmth and elegance to every corner of this abode. Convenience and privacy define the main level, which hosts a luxurious primary bedroom suite, office with views, open great room with vaulted ceilings providing a sanctuary of comfort and relaxation. Stepping into the front lushly landscaped courtyard, guests are greeted by a detached guest casita, complete with a heated pool and spa. Whether lounging poolside or enjoying a rejuvenating soak, visitors are treated to an unforgettable retreat experience. Silverleaf, located in North Scottsdale, Arizona, is a prestigious guard gated community known for its luxurious estates, exclusive golf courses, private Club and stunning desert landscapes. The Tom Weiskopf-designed Silverleaf Golf Course is a highlight for golf enthusiasts. With a blend of Spanish and Mediterranean-inspired architecture, the community offers a high standard of living, including upscale amenities like spas, fine dining, and exclusive shopping. Residents enjoy a harmonious balance between modern luxury and the natural beauty of the desert environment, making Silverleaf a sought-after destination for those seeking an exceptional lifestyle in North Scottsdale.

770 Forest Service 461 Road Fredonia, AZ 86022

$3,750,000
2 Beds
1 Bath
1,170 SqFt
Status Active
MLS # 6785689
Property Type Single Family Residence
Price Type --
Discover a unique opportunity to own the only privately-owned land and thriving RV park with hook-ups and a tent camping village near the North Rim of the Grand Canyon. This exceptional property is completely surrounded by National Forest, offering unparalleled access to scenic FS roads and trails for endless exploration. Just a one-hour drive (30 miles) from the Grand Canyon North Rim entrance, this location is also conveniently close to Jacob Lake Inn, a gas station, and the 67 highway. The property features a livable primary residence cabin and comes with special use permits from Coconino County. Nearby attractions include the historic Ranger Station, AZGFD Deer Check Station, Jacob Lake Inn (offering food, gifts, a food truck, gas station, and additional lodging options), and Jacob Lake trail rides. Other notable destinations within reach are Lake Powell (80 miles), Bryce Canyon National Park (115 miles), and Zion National Park (79 miles). The area is perfect for hiking, biking, snowmobiling, and cross-country skiing, with well-maintained roads providing easy access. The RV park offers amenities such as showers, clean toilets, an RV dump, and a water fill stationthe only one available on the North Rim. Jacob Lake is located on the property, adding to its charm and potential for development or expansion. The primary cabin is equipped with Starlink (buyer to confirm), and there is potential for future broadband service with SC Broadband, which could provide internet access for the entire park (buyer to confirm). The property includes a 3,600 sq. ft. shop/warehouse and 24-hour laundry/shower facilities available to park guests and others in the area. With flexible owner-carry terms and a lot of personal property included with a good offer, this is a rare chance to own a piece of history. The current owners live on-site year-round and have reliable UPS service, even in winter. Lot dimensions are approximately 2,500 ft x 3,500 ft (buyer to confirm), and a Seismoelectric Survey for a new well site has been conducted. Don't miss out on this quiet, first-stop destination for lodging, camping, and RVing en route to the North Rim. Inquire today to learn more about this incredible property!

10224 N Azure Vista Trail Fountain Hills, AZ 85268

$3,750,000
5 Beds
6.5 Baths
6,310 SqFt
Status Active
MLS # 6770517
Property Type Single Family Residence
Price Type --
Experience the pinnacle of sophistication with this meticulously designed home, positioned alongside the 7th fairway of FireRock private golf course. North-South facing home embraces both luxury and comfort! Open concept chef's kitchen with Viking and Bosch appliances, gas stove cooking, double ovens, staggered cabinets, walk-in pantry, center island, fireplace and plenty of mountain and golf views! Primary bedroom is privately situated on this level along w/2 guest bedrooms, den and laundry. Staircase leads to lower level with 2nd primary bedroom, guest bedroom, 2nd family room, wet bar, wine room, theater, game room. Extend your party to the backyard resort featuring large covered patio, contemporary pool and spa, gas grill, gas fire pit, travertine patio and spectacular sunsets! AC/WATER HEATERS/ROOF Water heater main level - Gas, 50 gallon (2020) Water heater lower level - Electric, 50 gallon (2019) First floor hot water recirculation system for quick hot water at faucets & showers 5 AC units (2 main level / 2 lower level / 1 garage) AC garage Senville mini-split (2024) Roof original standing seam metal, flat foam resealed (8/2024) Santec high-end luxury faucets, shower systems and tub fillers For reference visit: Widespread Lavatory Set - Santec 3 Natural gas interior fireplaces (main living / lower living / main primary bedroom ) 1 Natural gas fire pit Home is Wired for Alarm System Including Flow Sensor in Fire Sprinkler System BEDROOMS/BATHS 5 bedrooms, 6 1/2 baths. Each bedroom has an en suite bath (3 main / 2 lower) 2 bedrooms are primary suites - one main level, one lower level. 1/2 powder bath is located on main level KITCHEN - VIKING APPLIANCES

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