Finding the Right Home
Introduction If you don’t really know what you’re looking for in a home, how do you find the right one? Careful planning and consideration of your options can help ensure that you will be happy with the one you select. You may decide that buying a traditional, single-family home is not your best bet.
Your Home as a Source of Dollars in Retirement
Introduction For many retirees, a home is more than just a place to live, it’s a significant financial asset. If you’ve built up equity over the years by paying down your mortgage or benefiting from rising home values, that equity could serve as a powerful resource to support your retirement lifestyle. Whether you’re looking to
Using Your Home Equity
Introduction For many homeowners, equity in a home represents more than just ownership; it’s a powerful financial resource. Whether you’re looking to reduce your monthly expenses, cover large costs like a child’s college tuition, or consolidate debt, tapping into your home equity through refinancing or a home equity loan can be a practical solution. However,
Vacation Home Tax Considerations
Introduction Owning a vacation or second home can offer a personal retreat and the potential for rental income, but it also brings important tax considerations. The IRS distinguishes between personal use and rental use when determining how such properties are taxed. Whether you rent the home occasionally, use it primarily for yourself, or do a
Using Title Insurance to Protect Your Interest in Your Home
Introduction When you buy a home, you’re not just acquiring a physical structure—you’re purchasing the legal right to the property, known as the title. Ensuring that the title is clear of legal issues is a critical part of the homebuying process. A title examination helps identify any problems that might impact your ownership rights, but
Umbrella Liability Insurance
Introduction Life is unpredictable, and a serious accident or lawsuit could result in financial consequences that far exceed the coverage limits of your standard home or auto insurance. Umbrella liability insurance provides an additional layer of protection by covering claims that go beyond your existing policy limits and by offering coverage for certain types of
Temporary Rental of Principal Residence
Introduction If you’ve bought a new home and are still trying to find a buyer for your old home, you may decide to rent your old home to others temporarily. Fortunately, even if you rent your home to others temporarily, it may still qualify as your principal residence for federal income tax purposes (if you
Tax Credits for Energy-Saving Home Improvements
Introduction Previous legislation created and occasionally modified and extended two personal nonrefundable tax credits for home improvements that save energy: the nonbusiness energy property credit and the residential energy-efficient property credit. The Inflation Reduction Act of 2022 has replaced those credits with the energy-efficient home improvement credit and the residential clean energy property credit. Both
Tax Benefits of a Home
Introduction Owning a home is more than just a personal milestone. It also offers valuable tax advantages that can help reduce your annual tax bill. The IRS provides a range of deductions and exclusions that benefit homeowners, especially those who use the property as their principal residence. This is generally the place where you legally
Tapping the Equity in Your Home
Introduction As your mortgage balance decreases and your home’s market value increases, the equity you’ve built becomes a valuable financial resource. This equity—the difference between your property’s value and any remaining liens—can be accessed through a home equity loan or line of credit to fund a range of needs, from home renovations and education costs