Financial Benefits

Investment

There are many advantages to owning your own home including financial security, family stability and peace of mind. Read I am buying a house....So What? to learn more about the financial benefits of home ownership.

Tax Savings

Consider the Federal tax savings* achieved by "Nancy Homebuyer," when she becomes a home owner. Based on her yearly income of $85,000 she would save $4,300 per year. Her Virginia Income Tax would additionally be reduced by $700–1,000 (example forms not provided.) Howard G. Fries, CPA (hfries@cox.net) estimates that home ownership usually reduces total tax liability by 25–28%.*

Armed with this knowledge Nancy now knows that she can escape from that $1,300 per month rent, apply her tax savings and take on a $1,750 per month owners payment with the same net income. Smart woman.

Nancy Homebuyer's Income Tax Return
Before	IRS Form 1040A
After	IRS Form 1040
	IRS Form 1040 Schedule A Itemized Deductions

*Calculations are based on October 2004 tax information. Itemized deductions are typical but not universal. Check with a tax professional for your individual situation.