Building a custom home is not a cheap endeavor, so it’s important to really think about how much does it cost to build a house before you decide if it’s the right move for you and search for “home builders near me.” It’s true that there are a lot of expenses that go into organizing the construction of a brand new home, but there are some upsides and benefits to deciding to go this route instead of buying a home that is already built. One of the advantages is the tax deductions that you may be eligible for because you’re building your home. If you’re in the Orlando area, Charlie Johnson Builders is a leading building pioneer that can help you understand everything that goes into this decision and whether or not it’s the right choice for you.
How Much Does It Cost To Build A House & Can You Deduct the Costs?
Before you go searching for “home builders near me” you really need to sit down and go over the pros and cons of building a new custom home from the ground up. There are a lot of expenses that need to be considered. For instance, you still need a down payment for the land you are building on, obtaining permits and insurances, as well as all of the construction costs. Although most of the expenses you rack up during the construction aren’t deductible on your taxes that doesn’t mean you won’t get some breaks.
If you obtained a construction loan to build your new home, you can deduct the interest on this loan just like you’d be able to on a regular home mortgage. However, you’ll only be able to do this for the interest that is paid during the first twenty-four months of the loan. Also, you may be eligible for a number of tax credits in you decide to include things like energy efficient heating, air conditioning, lighting, or insulation because you are building a new home for personal reasons and not a business all of the bills and costs are considered personal expenses you can claim any income tax credits or deductions on IRS Form 1040.
Another way you’ll be able to write off the expenses that are associated with the building of your custom home is if the down payment you put down on the home is less than twenty percent of the home’s value and you had to pay mortgage insurance premiums. The catch with this though is that the house you’re paying mortgage insurance on has to be your primary residence or a secondary/vacation home.
Like any situation where the IRS is involved, it’s essential to keep detailed and well-documented lists of all of your building costs and any proof of the expenses.
Contact Home Builders Near Me
Charlie Johnson Builders is a leading building company in the Orlando area. We pride ourselves on providing innovative designs and beautiful affordable homes to all of our clients. If you’re wondering “how much does it cost to build a house” we can help you find the answer. Call or visit us today to find out more!