Tax Benefits and Home Owners Insurance Quotes: A Match Made in Heaven

By Rafael Onak, InsuranceAgents.com Staff Writer

Believe it or not, investing in a home can help reduce your home owners insurance and leave you with more money when it’s time to sell. Buying a home is the biggest investment you can make and, thanks to the government, it can also be the wisest thanks to the multiple tax benefits that coincide with home ownership.  After evaluating the tax rules related to your home, it's always a good idea to reevaluate your home insurance costs by getting a few quick home insurance quotes, so you can see if there are ways to reduce the overall out of pocket expense of your home.

Since tax rules vary based on a number of factors such as income, you should discuss with your financial advisor or home insurance agent about your home owners insurance quotes and to find out the particular details of your tax situation. The easiest way to compare quotes is by using our quick online forms. Many people assume that the main reason for owning a home is the pride of home ownership, but that is not the case. In most cases, the reason is purely economical because of the following financial advantages:

1. Mortgage interest. Need a good incentive to become a homeowner? How about the fact that the interest you pay on your mortgage is tax-deductible, up to $1 million. This deduction applies to any home, including a second one you might have across the country.
2. Tax-free profits. As a homeowner, you don’t have to pay taxes on any profit you make when you sell your home. You can exclude up to $250,000 from the sale of your home and $500,000 for a couple who files jointly.
3. Property taxes. You can claim your property taxes as an income tax deduction. This applies to your main home as well as any others you may own.
4. Moving benefits. Whoever said the government can’t be trusted? If you’re a homeowner, the government will allow you to sidestep many of your moving expenses when you purchase a new home if it’s closer to your job than your old home (at least 50 miles). In order to qualify, however, you must work full-time in the area of your job.

Tax Benefits Help Your Home Owners Insurance Quotes

As far as I’m concerned, there are no downfalls to being a homeowner. On top of having their own private getaway, homeowners also benefit from many attractive tax benefits. If you’re on the verge of purchasing a home but haven’t yet finalized your decision, consider the number of tax incentives that would make your purchase a great investment. Since tax rules vary based on many factors, however, be sure to consult with your home insurance agent or accountant about your particular situation and how you can obtain the lowest home owners insurance quotes around. You can compare up to 5 quotes in minutes using our online quote service.

Published: Thursday 8th October 2009