SAN JOSE, Calif., April 6, 2011 /PRNewswire/ -- As the deadline to file taxes quickly approaches, the Santa Clara County Association of REALTORS® reminds home owners of the many tax benefits they can take advantage of by owning a home.
"Many families are feeling a financial squeeze these days and the tax benefits associated with owning a home can be a welcome relief," said Mike Sibilia, President of Santa Clara County Association of REALTORS®. "There are many benefits to being a homeowner, but some of the most substantial advantages are most apparent at tax time."
Tax credits and deductions for homeowners include the mortgage interest deduction, capital gains on home sales, and credits for certain energy-efficient home improvements. The MID allows homeowners to deduct the interest paid on a mortgage debt of up to $1 million on a primary residence and one additional residence.
"Some suggest that many of today's tax incentives for homeowners primarily benefit the wealthy, but that is untrue," said Sibilia. "Ninety-one percent of homeowners who claim the MID earn less than $200,000 a year."
Federal law also allows sellers to exclude certain capital gains from the sale of a principal residence. Couples who file a joint federal return can exclude from taxation up to $500,000 of any gain in their home's value. Singles can exclude gains of up to $250,000.
There are countless tax benefits available to homeowners who have recently installed energy-efficient improvements, as well. The American Recovery and Reinvestment Act of 2009 created energy tax credits for installing insulation, energy-efficient exterior windows or doors, heat pumps, furnaces, central air conditioners, or water pumps. A 30 percent credit is also available to homeowners who installed alternative energy equipment such as fuel cells, solar water heaters, solar electric equipment, small wind energy projects, or geothermal heat pumps.
"For people who don't have hundreds of thousands of dollars in savings to buy a home outright, these tax benefits can help them begin building their future through homeownership," said Sibilia. "REALTORS® continue to work tirelessly to defend these tax benefits on Capitol Hill and ensure public policies that promote responsible, sustainable homeownership."
SCCAOR President Mike Sibilia can be reached for comments at [email protected] or 408.540.1711.
About the Santa Clara County Association of REALTORS®
SCCAOR, established in 1896, is California's oldest and Northern California's largest real estate association. We represent about 10,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.
SOURCE Santa Clara County Association of REALTORS