Buying a home has tax advantages that simply renting a home does not. You may have heard people say that when you rent, you’re just paying someone else’s mortgage and helping them earn equity.

With tax season right around the corner the following are 6 itemized deductions that, as a homeowner, you can take on your taxes. This is what you’re missing out on by not having your own mortgage.

Home mortgage interest:  When you first buy a home, the majority of your monthly payment is made up of interest. As you continue to pay your mortgage each year, slowly the balance shifts from interest, to principal payments.

The interest you pay on your mortgage up to $1 million per year is deductible.

Property tax: Did you know your property taxes can be deducted from your federal income taxes? Both state and local taxes are counted in this equation.

Home buying expenses: Certain fees and closing costs associated with a new home purchase can be deductible. Some examples are prorated interest on a new loan, prorated property taxes, and loan origination fees.

Home equity loan:  If you need money, for example, to pay off high-interest credit cards, start up a business, or any other number of reasons you can think of, you can borrow up to $100,000 against the equity in your home and deduct the interest.

Credit card interest, on the other hand, is not deductible.

Home-sale exclusion: When selling a home for profit, as long as you live in your home for two of the previous five years before selling, you only pay taxes on profits over $250,000 if you are single. You only pay taxes on profits over $500,000 if you are a married couple filing jointly.  This exclusion can be taken once every two years.

Free Rental Income: Another unusual benefit of owning a home is that you can rent your home for up to 14 days during the year and pay no tax on the rental income.  If you are a renter subletting your home you have to pay taxes on the income you earn.

If your lease is coming up for renewal and you are still trying to decide if it’s better to own verses rent in this economy here are 6 compelling reasons why you benefit as a home owner when it comes to tax time.

At Ideal Homes, we salute our military families and proudly welcome them into our new home communities. That’s why we want to make sure they know that select military personnel are still eligible for the federal home buyer tax credit. The extended purchase deadline, however, is fast approaching.

Qualified service members on official extended duty outside the United States for at least 90 days between January 2009 through April 2010 have until April 30, 2011, to purchase a home and reap tax credit benefits up to $8,000. The real estate transaction must close by June 30, 2011.

According to www.federalhousingtaxcredit.com , qualified service members are U.S. military uniformed services members, U.S. foreign service members or intelligence community employees. A person forced to return to the United States for medical reasons before completing an assignment of at least 90 days of qualified official extended duty may also receive the home buyer tax credit extension.

Here’s how the home buyer tax credit works:

After closing, first-time buyers receive a federal housing tax credit equal to 10 percent of the home’s purchase price, not to exceed $8,000. Current home owners living in their principal residence for at least five consecutive years may receive up to $6,500 when they purchase another principal residence. Qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture clause.

Income limits apply, and home buyers eligible for a V.A. mortgage may qualify for 100 percent financing.

A new Ideal Home plus an $8,000 home buyer tax credit –what a winning combination. For more information on our new homes starting from the $100s, please contact Elena at 405.364.1152, toll free 866.277.2670 or visit www.ideal-homes.com