The Tax Benefits of Homeownership

Research from NAHB economists shows that buying a home offers numerous tax savings that can add up to tens of thousands of dollars over several years. The study, entitled The Tax Benefits of Homeownership, shows that the three most important sources of tax savings for home owners are: 

  • Deductions for mortgage interest
  • Deductions for real estate taxes
  • The capital gains exclusion for the sale of a principal residence 

Home owners who itemize their taxes can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans. For most home owners, this means they can deduct ALL of their mortgage interest on their home. This particularly makes the cost of owning a home much more affordable for first-time home buyers and those who have been in their home for just a few years, since the bulk of their monthly house payments go toward interest, which is fully deductible. Additionally, 100 percent of property taxes are also tax deductible. Together, these provisions in the tax law add up to major savings. 

Furthermore, when the home is sold, the capital gain exclusion can again provide home owners a significant tax benefit. Under present law, married couples who have owned and occupied their principal residence over two of the past five years do not have to pay any taxes on the first $500,000 in profits from the sale of their home. Singles earn up to $250,000 tax free. 

Using several examples based on income and the cost of a home, the study shows that couples who itemize their mortgage interest and real estate tax deductions typically reap several thousand dollars of tax savings in the first five years of homeownership. Adding in the capital gain exclusion for the sale of a principal residence, a couple who sells their home at the end of 12 years (an average time of homeownership) can expect to garner tens of thousands of dollars in total tax savings for the entire period that they owned their home. 

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Brought to you by The National Association of Home Builders

Is Buying a New Home in Today’s Economy a Good Idea?

As a long term investment, homeownership is still one of the best investments for individual households. What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. Homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits for both home owners and their communities. Dollar for dollar, homeownership is a solid stepping stone to a future of financial security and the single largest creator or wealth for many Americans. On a national level, home appreciation has historically increased 5-6 percent annually, report economists at The National Association of Home Builders. Furthermore, the tax benefits of homeownership make housing an important source of wealth for middle-income Americans. The financial benefits of homeownership begin in the first year for most home owners through the ability to deduct mortgage interest and property taxes paid off their taxable income. 

In addition, a home is where your family can relax, spend quality time together and build lifelong memories. 

There are outstanding opportunities to buy a new home. Interest rates are still low, prices are right and we have a large selection of homes to choose from. 

Don’t miss out on the benefits of homeownership.

June Home of the Month

American West Kingsbridge in Coronado Ranch offers a wide variety of new home designs ranging from 1,486 to 2,996 square feet. The William, offers 2,564 square feet within an expansive three-story design. The raised porch entry opens to the home’s second-floor which features the main living areas, including great room, balcony, expanded kitchen with center island, and separate dining room and den areas. 

The William’s first-floor offers an extended game room option with media niche and includes a walk-in closet, full bath, laundry room and under the stairwell storage. Upstairs, the third-floor offers a central study/loft area adjacent to Bedrooms Two and Three, and full bath with dual-vanity. The master suite includes a dual-vanity bath with garden tub, separate shower and walk-in closet. The design offers the option of a third-floor laundry. 

Where there is an American West home, there are deluxe amenities included in the home. At American West Kingsbridge it starts outside, where residents are greeted by classic architectural detailing, front porches adorned with custom paving stones and professionally landscaped front yards with drip irrigation systems. Inside, American West’s superior homebuilding is evident at every turn. Granite kitchen countertops, custom cabinetry, sculptured railings with glass inserts, raised-panel interior doors, recessed lighting, cultured marble vanities, Moen® faucets, Whirlpool® appliances – the list is as long as it is impressive.

American West Kingsbridge is located within the builder’s Coronado Ranch planned community and features tree-lined streets and walking paths. The community is anchored by the Lawrence and Heidi Canarelli Middle School, in honor of American West president Larry Canarelli and his wife and includes Mark Fine Elementary and Sierra Vista High School. Coronado Ranch is in proximity to new shopping, entertainment and service amenities of this burgeoning southwest area, including Mimi’s Cafe, Sammy’s Woodfired Pizza, Best Buy, Home Depot, Sam’s Club and Wal-Mart. The community also is in proximity to Interstate-215, providing easy access to the Las Vegas Strip and McCarran Airport. 

To visit Kingsbridge at Coronado Ranch, take Interstate 215 to Rainbow Boulevard, exit south. Proceed to Shelbourne Avenue. Turn left to the models. Model homes are open from 10 a.m. to 6 p.m. daily. For more information, call (702) 263-0150.  To learn more about The William and Kingsbridge, visit AmericanWestHomes.com.

The William at Kingsbridge

Kingsbridge - The William

The Lasting Value of Homeownership

During the National Homeownership in June, the housing industry celebrates the many benefits of owning a new home. Families are continuing to seek to achieve the American Dream of homeownership and take their place among the more than 74 million Americans that own a home. 

The value Americans place on owning their home continues even through times of economic hardship. The Fannie Mae National Housing Survey conducted in January 2010 showed that two-thirds of American adults said they still preferred owning a home. And 70 percent of respondents said they believe buying a home continues to be one of the safest investments available. 

Home appreciation over the long term builds financial security for a family’s future. But most home owners don’t have to wait for the home’s value to increase to realize the financial benefits. Right from the first year, the majority of home owners are able to annually deduct the mortgage interest and property taxes they paid off their taxable income. This can mean thousands of dollars saved off a family’s tax bill every year.  

But the value of homeownership can be much more than financial. 

Owning a new home can often be a lifestyle movement, enabling a family to enjoy a new neighborhood, new features and other amenities that suit their present and future day-to-day activities. 

Newly-constructed American West homes deliver energy efficiency, storage space, well-designed floor plans, large yards and the latest technologies in electrical systems and appliances. The rooms are spacious – you will never lack for space or comfort. A new home also comes with the peace of mind of little maintenance and a warranty. 

Owning a new home also provides important emotional benefits. A home is where your family can relax, spend quality time together and build lifelong memories. 

Let us help make your dream of a new home come true today. Call (702) 308-1111 for more information on our communities or visit www.americanwesthomes.com

American West’s Love for Las Vegas

The commitment to Las Vegas from Larry Canarelli and his company, American West, grows out of a love for the community. As a local, family owned homebuilder, we have been providing homes for the families of Las Vegas since 1984. Everyone at American West is embedded in the Las Vegas way of life and involved in this amazing community.

“I love Las Vegas.  I think this is a wonderful place to live and raise a family.  And I always have.  Since the day I got here, I’ve worked hard to make Las Vegas a beautiful place.  My personal involvement is simply a carry through of my philosophy to help make a better Las Vegas,” said Canarelli

For Larry Canarelli, being part of Las Vegas means giving back to the community. He has raised his family here. He has coached over 20 children’s sports teams. He participates with school boards and actively gives to local schools. He has served on the board for many local charities. In recognition of his role as a leader and supporter of the Las Vegas community, a school in our Coronado Ranch neighborhood is named in his honor…The Lawrence and Heidi Canarelli Middle School.

Larry’s philosophy and commitment has also carried through in his company’s efforts and activities. 

“As a home builder, we have the opportunity to benefit the community in many ways.  By helping schools, building parks and being involved with community programs, we can help provide an environment where people feel comfortable raising their children,” Canarelli said.

American West has built over 15,000 homes and over 71 new home communities in Las Vegas.   Canarelli’s concern for the community is reflected through his involvement in every planning stage of each American West neighborhood.

“Our commitment to making a better Las Vegas is seen in each of the homes and neighborhoods we have built since day one,” Canarelli said.   The company has won numerous local and national architectural design awards since its beginnings in 1984. 

“We want to see Las Vegas developed where quality of life is preserved and enhanced, at its highest possible level.  For us, that starts with making our communities absolutely beautiful.  We do that in part with superior architectural designs, greenbelts, entry monumentation, state-of-the-art schools and larger yards,” he said. “We also make sure our homeowners have every modern convenience at their fingertips in regards to shopping, dining and recreation.”

We are currently selling at 8 communities located throughout the Las Vegas valley. Our collection of beautiful home newdesigns reflect American West’s tradition of architectural excellence, quality construction, innovative floorplans, pool sized backyards and superior customer service. These are some of the reasons why American West is one of the most successful, privately owned homebuilders in the nation.  Our sales centers are open from 10 a.m. to 6 p.m. daily. For community directions and more information, please visit www.AmericanWestHomes.com  or call (702) 308-1111.

Single Story with BRAG Space

American West has something to “brag” about. We have introduced a new, innovative home design to the Las Vegas area. 

The Single Story with BRAG space is a unique new design that offers homebuyers the livability of a single story home but also features a BRAG space that offers plenty of options of what to do with the additional living area. The unique BRAG space can be left as one large bonus room with unlimited possibilities like a theatre room, billiards table and storage or it can be built with a guest suite with spacious walk-in closet, large full bathroom, game room, and study area which gives homebuyers a completely private living area in the home. 

The main living space includes formal living and dining rooms, a family room, large gourmet kitchen with dining island that can seat up to 10, master suite and two additional bedrooms. 

The Single Story with BRAG space is being offered at three of our communities located in the southwest part of the Las Vegas Valley. Kensington at Highlands Ranch and Woodbridge in Coronado Ranch offer a 3,068 square foot version priced at $309,500. Reserve at Coronado Ranch offers a 2,518 square foot version priced at $249,500.  

We have also introduced a two-story with BRAG space which is being offered at our Lexington community in Highlands Ranch. The home is 2,284 square feet with up to 5 bedrooms. 

For more information on these homes or any of American West’s 8 communities visit www.AmericanWestHomes.com or call (702) 308-1111.

American West can also be found on Facebook http://www.facebook.com/americanwesthomes

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