Whether on television, over the radio, in the paper, or just around the office, you're bound to get a daily reminder about the benefits of owning your own home in Lane County.

Those benefits might include: growing your equity, painting your walls mauve if you so choose, adding an eating nook to your kitchen, and more. But, as Dennis Solin, a certified public accountant (CPA) with Solin and Associates in Eugene will attest, the real benefits come at tax time.

"Stop paying rent," stated Solin in regard to home ownership. "When you pay rent, you're using after-tax dollars. When you own a home, every payment you make is essentially made with pre-tax dollars."

That's because the interest you pay on your mortgage, property taxes, and any points you pay at closing, can be used to reduce the amount of taxes you owe. At the end of the year, all that money you paid in interest and taxes comes back to you. While you're living in the house, that can be a great benefit come tax time. But it gets even better.

"Right now, the IRS is allowing a gain of up to $250,000 for all individual homeowners - $500,000 for married homeowners filing jointly," quoted Solin. "When you go to sell your home you get to keep all the profit or equity. Everything! That is, as long as the gain doesn't exceed $500,000."

According to federal tax guidelines, homeowners need only live in a home for two out of the last five years before they can sell it and keep the entire gain.

"It used to be that the gain needed to be put into the next home as a down payment or it would be taxed. But that's changed," stated Solin. "And homeowners can do it over and over again every two years. There are no limits like there were a few years ago."

Although you cannot deduct your home improvements from your taxes, you can use those expenses to offset your taxes should your equity exceed $500,000, states Solin. In other words, if you do a complete remodel of your home and boost the value significantly, there is a chance of exceeding the $500,000 marker. That's when those receipts will come in handy.

Taxes are essential for keeping roads running, bridges standing and our local schools operating smoothly. But that doesn't mean you have to pay more than your fair share.

Be sure to talk with your tax advisor about your situation and how much you stand to save if you own your own home. Or if you don't have a tax advisor, call (541)914-4785 and we will be glad to put you in touch with a trusted tax professional.