Renting A Home Compared To Purchasing A Home

Tax Benefits

There are different kinds of tax benefits associating with owning and renting. One major perk of renting a home is the renter does not need to pay property tax on it. This can be a major advantage, especially for homes in more expensive neighborhoods. At the same time, even if the renter is not paying property taxes directly to the government, the landlord may simply factor those costs into monthly rent. While homeowners will need to pay taxes on their property, there are some tax benefits available to homeowners. A longtime favorite was getting tax exemptions on the property taxes one pays each ear, though recent changes to the tax law have done away with that benefit in future years. However, in most cases, the money spent on mortgage interest payments is still tax deductible, lightening the amount owed to the government each tax season.