• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Chris Graves, Certified Mortgage Advisor

Providing Mortgage Services in MA, NH, ME, RI and FL

  • Home
  • Mortgage Tips
  • Real Estate Tips
    • Home Buyer Tips
    • Home Seller Tips
    • Market Trends
  • AVM
  • Apply
  • About
    • Contact
    • Profile
    • Testimonials
    • My Zillow Reviews
Home / Mortgage Information / An Explanation Of BOSTON MA Common Tax Advantages For Owning Real Estate

03.14.12 Mortgage Information

An Explanation Of BOSTON MA Common Tax Advantages For Owning Real Estate

There can be many common tax advantages for owning real estate in Boston MA through use of tax deductions. Deductions lower your taxable earnings and therefore result in fewer taxes. It is important to understand the tax benefits before purchasing or when evaluating renting vs. buying. This article provides an explanation of MA common tax advantages for owning real estate.

Tax Deduction Requirements

Not everybody can take advantage of tax deductions. When preparing your taxes, you can use the standard deduction or itemized deductions, whichever is more favorable. If you own an inexpensive MA home, the deductible expenses may not total more than the standard deduction. Other financial variables may factor in as well. Only an accountant can give you a true evaluation of the tax benefits of buying a MA residence taking into account your personal situation.

Usable Property-Related Costs

Loan Interest

Only the interest part of your mortgage payment is tax deductible. In the first few years of having a MA property, you get charged primarily for interest than anything else. Therefore, the total deductible interest is much higher when you first own a property than in subsequent years. Your mortgage company will send you a statement each year detailing the mortgage interest paid on your MA property.

Real Estate Taxes

MA real estate property taxes may also be tax deductible. Real estate taxes are an annual amount but are generally invoiced in quarterly time frames. These taxes are sometimes included in your mortgage monthly payment, but file copies of the property tax bills mailed directly to you. The amount in mortgage statements may not include the full calendar year.

MI

If you first bought your MA residence within a designated time frame and if you are part of a certain income range, you may be able to deduct mortgage insurance payments. MI is due on a monthly basis for mortgages more than 80% of the home price and does not disappear until the loan amount drops below the 80% level.

Points and Other Fees

Consider keeping a copy of your closing settlement statement. Some charges such as points, adjusted real estate taxes, and pre-paid interest can be deductible. Give the paperwork to your tax consultant.

An Explanation Of MA Common Tax Advantages For Owning Real Estate

The above is an explanation of MA common tax advantages for owning real estate and refers to primary residences. If you own investment real estate, the potential deductions vary. This information is meant strictly as a basic overview. Always speak with a tax professional for sound guidance adapted to your personal profile or to your type of home.

It's only fair to share...Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
Linkedin
Share on google
Google
Share on pinterest
Pinterest
Share on email
Email

Tags: mortgage, tax

sidebar

Blog Sidebar

Blog Categories

  • Local Information (61)
  • Misc Topics (14)
  • Mortgage Information (118)
  • News (22)
  • Real Estate Information (176)
    • Featured Properties (2)
    • Home Buyer Tips (134)
    • Home Maintenance & Repair (12)
    • Home Seller Tips (40)
    • Market Trends (24)

ICYMI

MA Condominium Definition For Buyers

MA Spring Real Estate Market Trends

Wilmington MA Single Family Property Sales Overview For 2nd Quarter 2013

MA New Construction Mortgage Programs Introduction

Condo Market Statistics For Boston MA 2017 2nd Quarter

Self Employed Mortgages

Are you or someone you know self employed and are interested in taking out a mortgage? Does the income that you claim on your tax returns not necessary as much as you really make? Well I have the product for you. It is called a bank statement loan! Watch this 49 second video to learn more. I can ... Read More

New Freddie Mac Self Employed guideline

If you are self employed and you are looking to explore your mortgage options you need to listen to this one minute video! Contact Christopher Graves, Loan Officer at 978-376-5389 or PM me here. #selfemployed#selfemployedmortgage ... Read More

Could there be an opportunity brewing in real estate?

Could there be an opportunity in real estate? Listen to this 47 second video to find out how! PM me here or call/text 978-376-5389 for a no cost or obligation analysis. #realestate #purchase #windhamnh #boston #cma #1sttimehomebuyer #investor #massachusettsrealestate #nhrealestate #mainerealestate ... Read More

DSCR Loans

What is a DSCR Loan? The debt service coverage ratio percentage is used by lenders to determine the cash flow on an investment property. This allows the mortgage lender to access the borrower's ability to repay the mortgage loan. The DSCR percentage is calculated by dividing the market rent by ... Read More

What the Recent Fed Hike Could Mean to the Housing Market

To help fight inflation, the Federal Reserve has hiked its benchmark Fed Funds Rate six times this year, including their most recent hike of 0.75%, taking the Fed Funds Rate from 0.25% to now 4.0%. Remember, the Fed Funds Rate is the overnight borrowing rate for banks, and does not directly affect ... Read More

Disclosure

Company NMLS 1788.
Licensed by the New Hampshire Banking Department #13092-MB.
Licensed in Massachusetts.
Lender and Broker License #MC-1788.
http://www.nmlsconsumeraccess.org
Click Here for Our Privacy Policy

Footer

Chris Graves, Certified Mortgage Advisor

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

Contact Chris

Direct/Mobile: 978-376-5389
264 South River Rd, Suite 550
Bedford, NH, 03110
603-458-5107 x201

Topics

  • Local Information (61)
  • Misc Topics (14)
  • Mortgage Information (118)
  • News (22)
  • Real Estate Information (176)
    • Featured Properties (2)
    • Home Buyer Tips (134)
    • Home Maintenance & Repair (12)
    • Home Seller Tips (40)
    • Market Trends (24)

Disclosure

Company NMLS 1788.
Licensed by the New Hampshire Banking Department #13092-MB.
Licensed in Massachusetts.
Licensed in Maine.
Licensed in Florida.
Lender and Broker License #MC-1788 (Not Licensed in Alaska or New York)
http://www.nmlsconsumeraccess.org
Click Here for Our Privacy Policy

COPYRIGHT 2022 © CHRIS GRAVES, ALL RIGHTS RESERVED