Tax Planning: Writing Off Your Payment without a Mortgage!
Most people think that unless they can qualify for a conventional mortgage, there is no way they can receive a tax benefit from their monthly payments. What if I told you that with a little tax planning, you could have an extra $150 – $1,000 a month in your pocket? Yes, it is true!
Now, for most people that are renting or in a rent to own home, you cannot legally write off any portion of your payment. However, homeowners can write off their interest and property taxes on primary and secondary residences for up to $1.2 Million in real estate. This can save them thousands of dollars each year. And, if they are smart enough to adjust their withholding, they will have hundreds of extra dollars in their pocket each and every month.
So, how can you gain all the benefits of home ownership without actually getting a mortgage? It is simple! Rather than using the standard rent to own contracts, use owner financing documents. You can either purchase owner financing contracts online, or have an attorney prepare them for you.
Now, you may be thinking, how will I ever find a seller who is willing to owner finance a home for me? Believe it or not, a properly drawn up contract will have the same legal implications for them as a standard rent to own contract would while complying with the IRS guidelines for a bona fide sale. And, as long as you meet the requirements for a bona fide sale, you can write of your monthly payment!
What this means is that as long as a home owner would be willing to rent to own or lease option their home, they should be more than happy to owner finance it once they understand that you will be using a contract that gives them the same legal protection that the rent to own contract does.
