Tax benefits of ownership.
As a beneficiary in a Rhome property trust, you may be eligible for the same tax advantages as traditional homeowners. Here's what to know.
Mortgage Interest Deduction
As a homeowner with a beneficial interest in the property trust, you may be able to deduct your share of the mortgage interest paid. This can significantly reduce your federal tax liability, especially in the early years of the loan.
Property Tax Deduction
Your share of property taxes paid through the Rhome platform may be deductible on your federal tax return. The SALT deduction cap applies, but this remains a meaningful benefit for co-owners.
Capital Gains Exclusion
When you sell your share, you may qualify for the capital gains exclusion on your primary residence, up to $250,000 for single filers. Requirements include residency duration and ownership period.
Estate Planning Benefits
The trust structure provides estate planning advantages. Your beneficial interest can be transferred or inherited, potentially avoiding probate and providing clearer succession than traditional joint ownership.
Important note
Tax benefits depend on your individual financial situation and may vary based on federal, state, and local tax laws. The information provided here is for educational purposes and does not constitute tax advice. We recommend consulting with a qualified tax professional to understand how Rhome co-ownership may affect your specific tax situation.
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