As we enter into the New Year, tax season is right around the corner. As a new homeowner or buyer, you may wonder what the tax benefits of owning a home are.
There are several tax breaks to be aware of when you file your taxes as a homeowner. So, let’s break down some of them. Obviously, be sure to verify all of my suggestions with your tax advisor.
#1 Mortgage interest. The ability to deduct mortgage interest is a significant benefit of owning a home. Mortgage interest is the interest charged on a loan used to purchase a home.
#2 Second, Property taxes. As a homeowner, you will pay property taxes on a state and local level but most likely you can take a property tax deduction on your taxes. This deduction can be very valuable depending on the location where you live.
#3Third, a Home office. Post-pandemic, more homeowners are working from home. There can be some tax breaks for having an at-home office with your expenses.
#4 Fourth, Energy-efficient upgrades.
Many energy-efficient home improvements made to your home can qualify you for tax breaks. This includes energy-efficient appliances, solar, windows, and roofing.
Bottom-line: owning a home can have many financial benefits when filing your taxes. It’s best to consult with a tax professional to learn about all the help available to you and to make sure any of my suggestions can apply to you.
If you are a buyer entering the housing market, or a seller thinking to list or would just like some advice, feel free to reach out to my team and I so we can help you explore your options and find the perfect home.
