One of the many benefits of owning a home is the extra savings at tax time. Yes owning a home is a great benefit when it comes to filing your taxes each year. Whether you do your taxes on your own or use the services of a professional, make sure you take advantage of these tax savings opportunities.
Main tax benefits include being able to deduct interest payments and property tax payments. Homeowners may also exclude, to a limit, capital gains made on the sale of a home that previous year. Points paid toward your mortgage to get a better overall interest rate may also be deductible.
Certain environmentally friendly updates made to your home may also be eligible for a tax credit.
As the tax law continually changes and updates it is important to stay on top of what homeowner deductions or credits you may be eligible for.