Home ownership provides a tax haven

Home ownership provides a tax haven

It’s tax season again and thoughts of home ownership weigh heavily on the minds of renters and other prospective homebuyers. Renters are often apprehensive about the financial responsibility of owning a home. The professionals at Coldwell Banker® want to remind taxpayers that ownership, rather than renting, offers financial benefits. Below are tax incentives for home ownership, but as always, taxpayers should seek the advice of a financial professional:

•Deductible property taxes and interest. Most homeowners can deduct property taxes and interest paid on their mortgage for each year of ownership.
•Borrowing against equity. Homeowners can borrow against the equity they have built up in their homes. Equity from a home can be used to improve the property, buy a car or pay for education.
•Real estate tax exemption. Depending on the state, certain real estate tax exemptions apply for homeowners who meet specific criteria.
•Yearly home appreciation. Although it is not a tax advantage, homes build equity over time. Renters receive no financial return on monthly rental costs.

Reedville VA

Reedville on the Northern Neck of Virginia (between the Potomac and Rappahanncok Rivers) is a fisherman's town. Reedville is home to a thriving menhaden commercial fishing industry. Several sport fishing charters are available for the recreational fisherman. Each year, the town plays host to the Reedville Bluefish Derby. This fishing tournament, held in mid-June, features cash prizes in excess of $125,000.


The Reedville Fishermen's Museum is located in the center of the town's historic district. The museum has a nice collection of traditional Chesapeake Bay work boats. While at the museum, pick up a copy of the Reedville Walking Tour brochure. The tour describes the turn-of-the-century Victorian homes which line Main Street. The museum currently has a special exhibit documenting the history and restoration of three Chesapeake Bay skipjacks. The exhibit, entitled Skipjack Sunday, will be on display through August of 2002. You can view recently discovered photographs of Chesapeake Bay Skipjacks at the Skipjack Sunday website. Prints of the photos are also available for purchase through the website.