The buyer will get a current tax deduction for salary paid to the seller. Home Ownership and Investing Deduct personal bad debts. Don t fall for tax evasion schemes such as revocable foreign trusts or secret offshore bank accounts. There are plenty of legitimate ways to reduce your income taxes, so don t fall for shady deals sold in the backs of magazines or over the Internet. Own your own home.
Home ownership is one of the last tax shelters available to the middle class.
Mortgage interest and property tax deductions will save you taxes, and saving to own a home is a wonderful use for your money after you have contributed the maximum to tax-advantaged retirement plans. Deduct points paid on your home loan. Points paid when you acquire your home are deductible in that year. If you refinance again, don t forget to write off the remaining unamortized points in the year you refinance. Contribute to your IRA early in the year.