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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