You may not realize there are several tax benefits of being a homeowner! There are many tax benefits that could save you thousands for being a homeowner! Here are the most common.
This is one of the main tax benefits for homeowners. Mortgage interest allows you to deduct the interest you pay on your home to buy, build or improve your home.
State and local property taxes are generally eligible to be deducted.
There’s an eco-friendly tax break for homeowners, known as the residential energy-efficient property credit. The incentive applies to energy improvements made to a home, which might include installing solar panels, new appliances, and other energy-efficient upgrades.
If you pay for mortgage insurance as part of your monthly mortgage payment, you may qualify to deduct that expense from your taxable income. Mortgage insurance protects your lender if you can’t repay the loan and go into mortgage default.
Home Office Expenses
If you work from home or have a home-based business, you may qualify for the home office deduction, which applies to both homeowners and renters.