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The biggest advantage of owning real estate is with regard to being able to deduct the interest paid on your home mortgage or home equity loan.
There are some qualifications that need to be met to be able to deduct this interest, including:
* Whether or not the construction substantially improved the real estate;
* The amount of any home-equity debt does not exceed the fair market value of the home and that the residence in which you're attempting to deduct interest paid for the mortgage is your principal residence and not a rental or investment property.
Real estate tax law allows you to deduct interest paid on a home mortgage, a vacation home or a home equity loan by filing the proper paperwork with the Internal Revenue Service, Schedule A.
Many states also allow you to take similar deductions with regard to filing your state income tax return. Municipalities are also regulated when assessing real estate taxes under the real estate tax law, which includes being uniform in the assessment against all property owners under the taxing authority.
Besides the advantage of being able to deduct interest when paying your income taxes, the pride of ownership is usually listed as an advantage among real estate owners.