can qualify for the tax exemption if they are helping a child, grandchild, parent, or another immediate family member purchase their first home. The money withdrawn from either a traditional or Roth IRA must be used within 120 days or it becomes subject to the penalty, so be sure to plan ahead. Depleting your retirement savings is also a risky business, as it might — over time — be more cost-effective to keep the money earning interest rather than applying it to your down payment. Speak to a financial advisor for help with your specific situation. TAX BENEFITS - Owning a Home Can Provide Additional Income That Can Be Used To Make Your Payments. While the information contained in this chapter is fairly detailed I always recommend contacting an accountant to verify what tax benefits you may or may not be entitled to and how owning a home will actually affect your taxable income. When you pay rent, you get no tax benefits (other than the IRS "standard deduction" currently at $12,000 as of 2022). Your landlord gets to deduct the items that are allowed to be deducted such as mortgage interest and a portion of real estate taxes.
When you become an owner, those same benefits, subject to tax laws and your financial situation can apply to you as well.
Here is a very general and simplified explanation of how this works:
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