A Tax Shelter You Can Live In; Homeowners reap tax rewards while investing for the future.

Business/Real Estate Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--April 9, 2001

Owning a home provides privacy, security and a sense of community. But aside from many personal advantages, homeownership comes with a major financial advantage - tax benefits.

The professionals at Coldwell Banker Real Estate Corporation (Coldwell Banker(R)) explain that owning a home, rather than renting, can yield significant savings when tax time rolls around. The real estate company offers the following information, but also advises that taxpayers should always seek advice on such matters from a tax professional.

      Benefits for taxpayers include:

      -   Most homeowners can deduct property taxes and interest paid on
        their mortgage every year of ownership.

      -   Homeowners can borrow against the equity they build. "Buying a
        home is an investment for your future," said Paul Critchley,
        CPA and owner/operator, Jackson Hewitt(R) Tax Service,
        Hoboken, N.J. "Equity from a home can be used to improve the
        property, buy a car or pay for an education, and homeowners
        may have the ability to deduct the interest from their federal
        taxes. Renters never have this opportunity."

      -   Single taxpayers who qualify owe no tax on the first $250,000
        of gain from the sale of a principal residence. The amount is
        $500,000 for married couples filing jointly.

      -   Interest paid on a second mortgage may also be deductible if
        the total of the first and second mortgages is no greater than
        $1 million.

      -   Certain moving expenses may be deductible if the move is
        job-related and the relocation is 50 or more miles from the
        previous residence.

      -   Depending on where you live, certain real estate tax
        exemptions apply for people who meet specific criteria. "In
        New Jersey for example, disabled war veterans and their
        surviving spouses are exempt from real estate and property
        taxes. Homeowners should check with local tax consultants to
        see if any exemptions apply to them," said Critchley.

Is there a best time of year to buy a home? "In regards to your income tax return, the earlier in the year, the better. If you purchase a home during the first six months of a year, you have more months of deductible mortgage interest," said Critchley. "Of course in the long run, owning a home will save you money on your taxes, regardless of when it is purchased."

For 94 years, the Coldwell Banker(R) organization, a subsidiary of Cendant Corporation (NYSE: CD), has been the premier provider of full-service real estate. The company is an industry leader in residential and commercial real estate, through its Coldwell Banker Commercial(R) division. Globally, Coldwell Banker franchises more than 3,000 independently owned and operated residential and commercial real estate offices with more than 72,000 Sales Associates. Its award-winning Web site is located at www.coldwellbanker.com.