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By: G. M. Filisko When you're evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership. You can claim some tax deductions if you work from home, but be sure you're entitled to them before taking them. Owning your home not only allows you to build wealth through appreciation, but it can also reduce the amount of income tax you pay every year. Here are seven tax benefits for homeowners. 1. Homebuyer tax credits If you purchase your first home before April 30, 2010, you're entitled to a tax credit of up to $8,000. If you currently own a home, but sell it to purchase another home before April 30, 2010, you're eligible for a federal tax credit of up to $6,500. 2. Deductions for loan fees Typically, you can deduct the "prepaid interest" you paid when you got your mortgage loan. That includes points, loan origination fees, and loan discount fees listed on your settlement statement, even if the seller paid those fees for you. Each time you refinan...
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