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.