There are many benefits to owning a new home - one of which shows up in spring during tax time. That's right, owning a home has tax benefits!If you're a first time home buyer or you've just moved into a new home in the last year, read up to learn how owning a home can help you out on your taxes this year.
Just a necessary disclaimer: tax laws are complicated so be sure to talk with a professional about all of the possible deductions to make sure they apply to your particular situation.
Home Ownership Deductions
- Deduct your mortgage interest
- Points paid on your mortgage to lower the interest rate are tax deductible
- If you pay Private Mortgage Insurance this is typically tax deductible
- Property taxes are also deductible
If you've recently sold a home to move into your new home, there may be areas of tax deduction in that process as well. Ask your tax preparer about deducting the real estate commission, legal fees, title insurance, home inspection costs and administrative fees.
If you bought your new home because of a job move there may be moving expenses that you can deduct as well.
Ask about these possible tax deductions and how they can be applied to your tax return this year. Then enjoy the savings in your new home!
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