Buy a home in Nebraska and save hundreds of thousands of dollars in your taxes, thanks to a little-known law known as the “Nemmy-style” tax law.
The Nebraska Taxpayer’s Relief Act of 2017 (NTFRA) makes it a tax-free homebuyer perk, so you don’t have to pay a penny.
You’ll also save more money by using the same tax credits and deductions that help homeowners all over the country.
But if you’re still confused about the details of the tax law, here’s a primer: Nebraska has a long history of giving people an incentive to buy homes that have become overpriced or vacant.
That has led to a housing bubble, which has created a lot of bad debt.
In fact, a study released in April 2017 by the Tax Foundation found that in the state of Nebraska, the median home value is now $1.3 million.
This is all bad news for people in Nebraska, who were already struggling with the cost of living.
For many of them, it’s made the state even harder to get into.
And, as you might expect, many of those homeowners aren’t necessarily qualified to purchase a home, and are often unable to afford to purchase their own.
Here’s what you need to know about the tax benefits of the NTFRA.
Nebraska Tax Credits and Deductibles What is the Nebraska Taxpayers Relief Act?
The Nebraska State Taxpayer Relief Act (NSTRA) allows taxpayers to claim deductions on their taxes, as well as credit their state income tax credit, and child tax credit for certain types of tax relief.
So, you can deduct up to $1,000 of interest and penalties, up to 30% of your net mortgage interest, and up to 15% of state income taxes paid.
You can also deduct up 2.5% of qualified home purchases and up 2% of all qualified mortgage interest expenses.
The NSTRA is similar to the tax credits offered by many states, including Alaska, Delaware, Florida, Louisiana, and Maine.
But the NSTRI also allows you to claim a state property tax deduction.
The total value of your home in the State of Nebraska can be used to claim this property tax credit.
The state also offers an income tax deduction up to 25% of the value of the home.
What does the NTSR mean for you?
Here’s a quick rundown of what you can do to qualify for this tax credit: Deducting property taxes can be a good way to save on property taxes.
You could deduct the value from your taxes for the current year.
Or, you could deduct up 4.5%.
Your state income-tax credit can be up to 50% of that value.
You also get an extra credit for eligible qualified homebuyers.
For example, you may get a $1 million credit on your property taxes if you qualify for the Home Equity Refinance credit, which is available to qualifying homebuy, home-equity investors who earn $100,000 or more.
How does this help you?
The NTSRs deductions and credits are limited, but it can help you save even more money.
Deductible home purchases are deductible up to the value in your home, but the NTRRs can also help you deduct up 10% of home expenses up to a total of $5,000.
Deduction for qualified home buyers is also limited to a maximum of $1m in total.
The homebuy credit can also be used for qualified mortgage-related expenses.
You’re also eligible for up to 10% interest credits and up 1.5 percent of qualified mortgage expenses.
What are the deductions and credit amounts?
The deductions and tax credits listed below are limited to the values in your property.
For more information on deductions and the tax credit amounts, read our tax calculator.
Deductions and credits available in Nebraska Tax Code Section 35.10-11, Tax Year 2018 (and previous tax years): Home value tax deduction: The NTRR provides a tax deduction of up to 100% of a home value of $500,000, and a tax credit of up, 25%, up to 40% of taxable income.
The property tax deductions available in 2017 for the value range from $2,000 to $2.5 million.
Home equity loan deduction: You can claim up to 20% of any qualified home equity loan.
Deductive mortgage interest deductions: The credit for qualifying home buyers who are not qualified home builders or mortgage brokers is limited to $250,000 and is only available to qualified homebuilders or mortgage-brokers.
Mortgage interest deduction: Up to $500 in mortgage interest may be deducted for each eligible qualified mortgage loan made in 2017.
Tax-free credit for qualified Home Equity Loan: You also have a tax exemption up to 5% of qualifying home purchases.
You get up to 2%