Buying a home can provide many tax benefits, starting from the time you purchase until when you decide to sell.
1. Mortgage Interest
Interest paid on your mortgage is tax deductible, within certain limits.
Mortgage lenders often charge a variety of fees, one of which is called “points.” Points are deductible; including points on refinanced mortgages.
3. Equity Loan Interest
Often you are able to deduct a portion of the interest paid on a home equity loan or line of credit.
4. Home Improvement Loan Interest
Interest on loans taken to make major home improvements can be deducted; however, the work being done must be a “capital improvement”.
5. Property Taxes
Property taxes or “real estate taxes,” are fully deductible from your income.
6. Home Office Deduction
When you use a section of your home solely for conducting business, you are often able to deduct related home costs.
7. Selling Costs
You’ll be able to reduce your taxable capital gain by the amount of your selling costs , when selling your home.
8. Capital Gains Exclusion
Tax laws allow tax perks for married and single taxpayers in certain brackets.
9. Moving Costs
New promotion? You may be able to deduct some of your moving costs.
10. Mortgage Tax Credit
There are home-buying programs which allow low-income, first-time homebuyers to benefit from a mortgage interest tax credit.