There are a wide range of benefits and perks to being a homeowner today. While many look at owning a home as a financial burden, there are some notable financial rewards associated with being a homeowner as well. The federal government recognizes that owning a home is expensive and therefore allows for a number of write-offs and deductions to help with the financial stress. First and foremost, taxpayers must determine whether it makes sense to file with a standard deduction or to file deductions that are itemized. Then, homeowners must look to the tax code to determine what specific tax breaks may apply to their situation.
The following are some of the most common tax breaks for homeowners:
- Mortgage interest
- Equity loan interest
- Property tax
- Points from your mortgage lender
- Home improvement loan interest
- Capital gains exclusion
- Home office
- Selling costs
- Moving costs
- Mortgage Credit Certificate (MCC)
Home-related itemized deductions have the potential to save you quite a bit of money during tax season. If you are a homeowner looking to take advantage of as many tax breaks as possible, it is important to speak with a professional to learn more about your options. Good luck this tax season!