This time of year, many people eagerly check their mailboxes looking for their tax return check from the IRS. But, what do most people plan to do with the money? GO Banking Rates recently surveyed Americans and asked the question – “What do you plan on doing with your tax refund?”
The results of the survey were interesting. Here is what they plan to do with their money:
- 41% – Put it into savings
- 38% – Pay off debt
- 11% – Go on a vacation
- 5% – Make a major purchase (car, home, etc.)
- 5% – Splurge on a purchase
Upon seeing the research, The National Association of Realtors (NAR) wondered if this could help with a constant challenge cited by many people who wish to purchase a home – saving for the down payment.
In a recent post in NAR’s Economists’ Outlook Blog, they explained:
“With a sizable tax refund, the average American would have a decent down payment depending on which region or market you live in.”
They went on to add:
“[A]pproximately 5 percent of all respondents indicated they would make a major purchase which does not seem like a lot. However, there is a bigger group 41 percent who see saving the tax return is best and that group could be potential homebuyers if they are not already.”
In other words, putting that money toward purchasing a home is a form of savings.
When one considers that first-time home buyers in 2016 had an average down payment of 6%, a decent tax return could go a long way toward the necessary funds needed for a down payment on a house. Or perhaps, the down payment needed by a son or daughter to make their homeownership dream a reality. How are you going to spend your return?
8 Tax Breaks for Homeowners
Owning a home doesn’t come cheap, but it’s always great to know that some of your expenses are tax deductible. If you want to know how you can minimize the cost of owning a home by maximizing homeownership write-offs, you’ve come to the right place. Please note that the information presented here is based on the 2015 tax year. Buy Home Near Springbrook Prairie Forest Preserve
1 . Mortgage Interest Buy Home Near Springbrook Prairie Forest Preserve
When it comes to mortgage interest, there is always room for you to deduct all the mortgage interest payments you make on your home. This applies not only to your home equity line of credit (i.e. on a loan worth up to $100,000) but also to a second mortgage. If you own another home, such as a mobile home or vacation cottage, you can deduct the mortgage interest for it as well, provided you stay there for at least 14 days a year or 10% of the duration it is rented out. Buy Home Near Springbrook Prairie Forest Preserve
Making The Most Out of Your Tax Refund
You can use your tax refund in a variety of different ways really. You can go for a vacation, buy a brand new TV, or some other luxurious ways you might have in mind. However, with a tax refund averaging $3,000, one of the most efficient ways of using it is to reinvest it back into your home. Regardless of the amount, if you are getting a tax refund this year, you can use the following suggestions, to reinvest your refund and make improvements to your home. Buy Home Near Springbrook Prairie Forest Preserve
Clearing debts Buy Home Near Springbrook Prairie Forest Preserve
You might have found yourself in a position where you needed a loan. It might have been to start a business or a home reconstruction. You might also have taken a loan for some other personal projects that needed completion when the funds were not readily available at the time. Buy Home Near Springbrook Prairie Forest Preserve
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