There are not only tax deductions for the new home owners but also for the existing home owners as well as foreign nationals. Which kind of tax deductions you will get depends on your personal situation and on your resident status.
As an US citizens you can deduct from your annual
income the mortgage interests and the mortgage insurance costs as well as the
local real estate property. These tax reliefs are not to underestimate and you
will get a tax return quickly from the government when you have timely filed your
taxes before April 15 deadline. These tax refunds are certainly welcomed by
everybody and sweetens the monthly tax payments that come with the pay check.
The before mentioned tax reliefs do not apply
for foreign nationals when they do not earn income that is taxable in the US.
However, for the foreign nationals there is a tax deduction available when they
sell their home to buy a bigger one or liquidate their assets.
The seller, in this case the foreign
national has to pay FIRPTA – tax on the capital gain that he/she makes in the
sale process. But this owed FIRPTA tax amount can be reduced by the improvement costs that
were done in the property and the legal costs that are related to the real
When you want to get your FIRPTA taxes back completely or
partial you as the foreign national seller have to file income taxes too in the
following year after the sale of your home.
This information is only a quick and partial
overview and you as the taxpayer should discuss your individual tax situation
with a tax professional.
For questions about how to get your tax paperwork
started please contact us at firstname.lastname@example.org