Tax Breaks and Home Ownership
Tax season is right around the corner. Are you ready?
As homeowners and prospective buyers, you may wonder what the tax benefits are of owning a home.
There are several tax breaks to be aware of when you file your taxes as a homeowner. So let’s break them down. Obviously, be sure to verify all of my suggestions with your Tax Advisor.
Number One…when you own your home, you are allowed to deduct your mortgage interest on your taxes. This is a significant advantage each and every year. Mortgage interest is the interest charged on your loan and it makes up a large chunk of your payment on a monthly basis.
Secondly, As a homeowner, you will pay property taxes on a state and local level, and it is from this, you can take another property tax deduction.
The next opportunity is the ability to write off a portion of your home office with your expenses, a benefit you can qualify for if you work from home like many of us since the recent Covid pandemic.
Finally, certain Energy Efficiency upgrades can qualify for additional tax benefits. These include energy-efficient appliances, solar windows, roofing, and more. Make sure to check with your accountant for the most updated list of opportunities.
The bottom line is that owning a home can have many financial benefits. If you are thinking of buying this year, or potentially listing your home and want some free advice, feel free to reach out to my team and I at Culture Realty so we can help you explore your options and find you the perfect home.
Home Office Deductions
Energy Efficient Property Credits