Seven Reason to Buy a Home Now

1. Tax Deductibility of Mortgage Interest—Qualified mortgage interest on the first mortgage and home equity loans are deductible on Schedule A as a personal deduction.
   Tax Deductibility of Property Taxes—Property taxes on a first or sec-ond home are deductible on Schedule A as a personal deduction.
   Appreciation Potential—Real estate is considered a good long-term investment because it usually continues to appreciate. The effects of leverage can multiply this increase when borrowed funds are used to purchase the home.
   
   
2. Capital Gains Exclusion—A homeowner can exclude up to $500,000 of capital gain if married and filing jointly, or up to $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years.
   
   
3. Capital Gain Treatment—Congress allows preferential tax treatment on gains from capital assets held for more than one year. This would be important for a homeowner who has gains in excess of the allowable exclusion.
   Principal Accumulation—Mortgages are designed to pay the interest for the time that the money has been used, as well as to retire the principal debt over a period of time. This means part of the payment each month is for principal accumulation.
   You can enjoy it—Pride of ownership is a valid reason for wanting to own a home. You can decorate it to your own taste and enjoy all of the benefits while making a great investment.
   
   
4. Tax Deductibility of Mortgage Interest—Qualified mortgage interest on the first mortgage and home equity loans are deductible on Schedule A as a personal deduction.
   Tax Deductibility of Property Taxes—Property taxes on a first or sec-ond home are deductible on Schedule A as a personal deduction.
   Appreciation Potential—Real estate is considered a good long-term investment because it usually continues to appreciate. The effects of leverage can multiply this increase when borrowed funds are used to purchase the home.
   
   
5. Capital Gains Exclusion—A homeowner can exclude up to $500,000 of capital gain if married and filing jointly, or up to $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years.
   
   
6. Capital Gain Treatment—Congress allows preferential tax treatment on gains from capital assets held for more than one year. This would be important for a homeowner who has gains in excess of the allowable exclusion.
   Principal Accumulation—Mortgages are designed to pay the interest for the time that the money has been used, as well as to retire the principal debt over a period of time. This means part of the payment each month is for principal accumulation.
   
   
7. You can enjoy it—Pride of ownership is a valid reason for wanting to own a home. You can decorate it to your own taste and enjoy all of the benefits while making a great investment.