A Tax Shelter that is Shelter.

In addition to the many advantages of homeownership, homes come with a major financial advantage - tax benefits. Owning a home instead of renting can lead to a significant amount of savings when tax time rolls around. Buying, selling or owning real estate can help you reap some of the biggest tax advantages available.

Benefits for taxpayers include:
Most homeowners can deduct property taxes and interest paid on their mortgage
every year of ownership. Interest paid on a second mortgage may also be deductible if the total of the first and second mortgages is no greater than one million dollars. Homeowners can also borrow against the equity they build. Equity from a home can be used to improve the property, buy a car or pay for an education, and the homeowner may have the ability to deduct the interest from their federal taxes. Renters don't have this opportunity.

Single tax payers owe no tax on the first $250,000 of profit from the sale of a
principal residence. The amount is $500,000 of profit for married couples filing
jointly. Certain closing costs may be deductible if the move is job-related and the
relocation is 50 or more miles from the previous residence.

Is there a best time of year to buy a home? For tax purposes, the earlier in the year, the better. If you purchase a home during the first six months of a year, you can deduct closing costs, and will have more months of deductible mortgage interest. Of course owning a home will save you money on your taxes whenever it is purchased."