Your Breaks And Benefits
Owning a home comes with many benefits, and one of the most rewarding is the potential tax breaks you can claim as a homeowner. These deductions and credits can significantly lower your tax bill, making homeownership even more attractive.
Here are some of the key tax deductions for homeowners:
Mortgage Interest: This is often the biggest deduction for homeowners. You can deduct the interest you pay on your mortgage up to a certain limit, currently $750,000 for single filers and married couples filing jointly.
Home Equity Loan Interest: Interest on home equity loans and lines of credit can also be deductible, but only if you use the money for substantial home improvements.
Property Taxes: You can deduct the property taxes you pay to your local government. There is no limit on this deduction, but you must itemize your deductions to claim it.
Discount Points: If you paid points to lower your mortgage rate, you can deduct them over the life of your loan.
Home Office Expenses: If you have a dedicated home office that you use regularly and exclusively for your work, you can deduct a portion of your home expenses, such as utilities, mortgage interest, and property taxes.
Energy-Efficient Improvements: You can claim a tax credit for installing energy-efficient upgrades in your home, such as solar panels, windows, and insulation.
Other Deductible Expenses: In some cases, you may also be able to deduct other home-related expenses, such as casualty losses, mortgage insurance premiums (if paid before 2022), and pest control services.
It’s important to remember:
- You must itemize your deductions to claim most of these benefits.
- The specific rules and limits for each deduction can change, so it’s always best to consult with a tax professional to ensure you’re claiming all the deductions you’re entitled to.
Here are some additional resources that you may find helpful:
- IRS Publication 530: https://www.irs.gov/pub/irs-pdf/p530.pdf
- NerdWallet: https://www.rocketmortgage.com/learn/tax-deductions-for-homeowners
- Rocket Mortgage: https://www.rocketmortgage.com/learn/tax-deductions-for-homeowners
By understanding and claiming the tax deductions available to you, you can maximize your savings and make homeownership even more rewarding.
I hope this information is helpful! Please let me know if you have any other questions.
Mark Roan, REALTOR® 