Tax Quirk Could Make Your Home More Attractive to Buyers
If you're selling a home, here's how to make it more attractive to potential buyers: Throw in some cash and an income tax deduction.
The Internal Revenue Service allows the seller to pay points -- that's a fee some homeowners pay to lower their mortgage rates -- on the buyer’s behalf. Then the buyer gets to deduct the points as mortgage interest.
Depending on the home buyer's marginal tax rate, a deduction of $2,000 in seller-paid points could result in $500 in free money.
Get the details in my Interest.com article, Tax Quirk Could Make Your Home More Attractive to Buyers.
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