Give Me a Break
As we enter into the New Year, tax season is right around the corner. As a new homeowner or buyer, you may wonder what the tax benefits of owning a home are.
There are several tax breaks to be aware of when you file your taxes as a homeowner. So, let's break down some of them. Obviously, be sure to verify all my suggestions with your tax advisor.
#1 Mortgage Interest.
The ability to deduct mortgage interest is a significant benefit of owning a home. Mortgage interest is the interest charged on a loan that is used to purchase that home.
#2 Property Taxes.
As a homeowner, you will pay property taxes on a state and local level but most likely you can take a property tax deduction on your taxes. This deduction can be very valuable depending on the location where you live.
#3 A Home Office.
Post-pandemic, more homeowners are working from home. There can be some tax breaks for having an at-home office with your expenses.
#4 Energy-efficient Upgrades.
Many energy-efficient home improvements made to your home can qualify you for tax breaks. This includes energy-efficient appliances, solar, windows, and roofing.
Bottomline: owning a home can have many financial benefits when filing your taxes. It’s best to consult with a tax professional to learn about all the help available to you and to make sure any of my suggestions apply to you, as I am by NO means a tax expert, so be sure to consult your tax advisor or CPA.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!