Tax Benefits of Homeownership

If you recently bought a home, downsized, or have a mortgage, you might qualify for a tax deduction. As always, please consult your tax professional for more information on how this may apply to your situation. Tax rules change often.

  1. If you have a mortgage, you may be able to write off your interest as long as the home is your primary or secondary residence. Nearly 70% of homeowners with a mortgage claim this deduction on their taxes.
  2. If you have a home equity loan, you may be able to deduct interest as long as you are not subject to the alternative minimum tax (AMT).
  3. Do you pay local/state property taxes? These can also be deductible as long as you are not subject to the alternative minimum tax (AMT).
  4. Did you pay points to secure a better rate on your home loan? Under some circumstances you can claim a deduction on your primary residence. Visit irs.gov for more rules about this deduction
  5. Did you sell your home? You may be eligible for a break on capital gains taxes if you owned the property for at least 2 years and lived in it for 2 of the 5 years before you sold it.
  6. Did you make a home improvement for medical reasons? These may qualify for a partial deduction.
  7. If you use a part of your home regularly and exclusively for business, and your home is your principal place of business, you may be able to claim a deduction for that percentage of your home.

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