As a homeowner, you have access to several tax benefits that can help to reduce your tax liability and save you money.
List of Top Tax Benefits of Homeownership
The interest on your mortgage is tax deductible, up to certain limits.
Property taxes on your home are tax deductible.
Capital gains exclusion
If you sell your home, you may be able to exclude up to $250,000 (or $500,000 for married couples filing jointly) of capital gains from the sale of your primary residence.
Home office deduction
If you use a portion of your home as a dedicated home office, you may be able to claim a home office deduction on your tax return.
Energy-efficient home improvements
You may be able to claim a tax credit for certain energy-efficient home improvements. Insulation, windows, and heating and cooling systems should be your way to go!
Mortgage insurance premiums
Mortgage insurance premiums may be tax deductible.
If you homestead your residence you’ll get $50,000 off the assessed value for taxes. That’s about $600-$700 in tax savings every year.
It’s important to note that these tax benefits may be subject to certain limitations and restrictions, and it’s always a good idea to consult with a tax professional to understand how they may apply to your specific situation.
I hope this information is helpful in understanding some of the tax benefits of being a homeowner. If you have any further questions or would like to discuss your specific situation in more detail, please don’t hesitate to reach out.