First time home owners may not realize all the tax breaks that are possible options for them - just by paying a mortgage instead of rent! In fact, there are so many tax breaks available, it seems as if the government should owe us home owners money!

Even old timers who own a home may want to read on - as the government has recently introduced yet one more tax break for all home owners; this newest one is called the Mortgage Forgiveness Debt Relief Act of 2007.

There are already several tax incentives out there for home owners. The capital gains (i.e. profit) that you make on the sale of an asset are usually tax deductible, but in the sale of your home, this has been waived by the Tax Relief Act of 1997.

Before this law came into effect home-owners could claim capital gains exemption only once in their lifetime, no doubt this stems from the 'good ole days' when everyone bought a home and stayed in it until they died!

Now, however in these days of frequent house moves, the government lets you sell your home and make a profit which you can keep! However, if you make an enormous profit, you have to share some with the tax department, but the limit is very generous.

You can keep any profit of up to $250,000 if you are single or $500,000 as a married couple, after that the profit (over and above the original cost etc.,) is taxable.

Mortgage interest is also tax deductible, for a mortgage debt of up to $1 million - that should cover most of us! Also, the Mortgage Forgiveness Debt Relief Act of 2007 allows you to deduct your mortgage insurance interest. Wow! Surely the government owes us home owners money by now?

But wait - there's more! If you (and your spouse if you have one) earn less than $100,000 gross per annum you can also deduct PMI from your tax bill. This is especially helpful for families who bought home with less than a 20% down payment; they can deduct PMI until 2010.

All these tax breaks add up to several bucks and when you add that to the equity that can be made on a home, it's a good deal. On top of everything else the mortgage interest rate is low, low, low - and right now it is a buyer's market (i.e. the price is right).

However, these days it must be agreed that you should plan to buy only if you think you can stay in the home for a few years in order to allow the equity to build up.

Some homeowners who have a federally insured loan may qualify for the deduction of their property taxes on their federal income tax return. Also 'points' that are paid to take out a mortgage are tax deductible up to $1,000.00. (This counts as a tax deduction whether you or the seller paid.)

Come on, are you still reading this? How many more breaks do you want? Get out there and start looking - 80% of all prospective home buyers start on the Internet so just keep clicking!

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Foreclosed Property Auction - Saving You A Lot Of Money For A Real Estate Property
The government is actively in the real estate business where they make seized or foreclosed properties available for sale. These properties are usually owned by people who took out a loan from the government and failed to repay it. The property acted as collateral in case the debt wasn't paid off. ... more...

Government Foreclosures
You can buy real estate properties from the government at low and discounted prices through government foreclosures. Get some tips, info and guide on government foreclosures and how you can avail of these properties and invest for yourself a lifelong wish. You can buy investment properties, land, ... more...

Foreclosed Home For Sale - Grab The Home You Want At The Lowest Price Now!
Want to find a cheap foreclosed home for sale? Have you ever wanted to find a foreclosed home for sale around your price range or even lower? Of course you have! Why wouldn't you want to buy a foreclosed home for sale? Especially when you know there are many extra costs to consider when purchasing ... more...

Should Government Profits On Reality Be Lowered?
If you are planning to sell your house this spring, and are disheartened by the amount of brand new homes for sale in your area, take heart! It seems the Government slide off more of our bucks than we probably realize, but at least one of these taxes could work in your favor. A new report that has ... more...