What are the tax benefits of homeownership? Q.What are the tax benefits of homeownership? A.The main tax benefit of owning a house is that the imputed rental income homeowners receive is not taxed. Although that income is not taxed, homeowners still may deduct mortgage interest and property tax payments, as well as certain other expenses from their federal taxable income if they itemize their deductions. Additionally, homeowners may exclude, up to a limit, the capital gain they realize from the sale of a home. Read more about What are the tax benefits of homeownership?
Do existing tax incentives increase homeownership? Q.Do existing tax incentives increase homeownership? A.Probably not. The US homeownership rate is lower than in many other developed countries that do not offer similar tax subsidies for homeownership. Beyond a base level, US subsidies mainly support larger homes and second homes. Additionally, evidence suggests that the subsidies raise housing costs, thus dissipating their effectiveness in helping people buy their own homes. Read more about Do existing tax incentives increase homeownership?
