Tax Benefits of Buying a Home [Real Estate Insider]

Apr 28, 2020 2:29:10 PM / by Brett O'Daniell

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So are there any tax benefits to owning your own home? The answer is YES! there are quite a few ways owning your new home can provide tax benefits. HomeTraq outlines most of the ways property tax benefits can apply to you!

  • Mortgage Interest
    This tax break applies towards most loans secured for your primary or secondary homes. There are some catches so do some extra research.

  • Property taxes
    You might be able to deduct any property taxes you pay on your home, as well as on a vacation home, car, RV or boat.

  • Home Improvement 
    If you have taken out a loan for home improvements you are likely able to deduct interest on it.

  • Mortgage Points 
    Many homeowners pay points to get a better rate for a mortgage. If you've paid points they might offer tax breaks if they are associated with the purchase or refinance of a home.

  • Energy Efficiency 
    Energy efficiency can be great for your wallet for a numerous reasons! One big reason is the tax credits for things like solar panels and solar water heaters.

  • Home Office 
    If you use part of your home as an office you may be able to claim a deduction for the operating expenses and depreciation of your home. If you are self-employed, this probably applies to you!

  • Private Mortgage Insurance
    You must get private mortgage insurance with a lower then 20% down-payment. If you have a gross income of $100 000 or less you can deduct the mortgage premium paid on PMI.

Remember, HomeTraq is a free service that provides the superior home-buying experience! In no way does this article serve as professional tax advice and all financial planning should be done by a professional. 

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Happy House Hunting!

 

Topics: home purchase, property taxes, home ownership, credit profile, mortgage payments, before you buy, buying a home

Brett O'Daniell

Written by Brett O'Daniell

Co-Founder of HomeTraq. 18+ years real estate and mortgage experience.

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