Tax benefits of buying property

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Ø   Tax benefits of buying property:

If the loan is taken jointly, then each of the loan holders can claim a deduction for home loan interest up to Rs 2 lakh each and principal repayment u/s 80C to Rs 1.5 lakh each in their individual tax returns. To claim this deduction, they should also be co-owners of the property taken on loan. 


Ø   Does buying property help with taxes?

The main tax benefits of owning a house is that the imputed rental income homeowners receive is not taxed. It is a form of income that is not taxed. Homeowners may deduct both mortgage interest and property tax payments as well as certain other expenses from their federal income tax if they itemize their deductions. 


Ø   How much does buying a house reduce your taxes?

Property tax deduction

In addition to the interest you pay on your mortgage, homeowners can also deduct up to $10,000 paid on property taxes. Depending on the property tax rate where you live, and how much you paid for your home, this could be substantial.


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