But another great benefit about owning a home isÂ the financial benefits that you can take advantage ofÂ during tax season.
Major Tax BreaksÂ for Homeowners
Owning a home, and eventually selling it, can offer you opportunities for deductions on your taxes, and we wanted to outline theÂ majorÂ tax breaksÂ for homeowners today. Are you taking advantage of these tax benefits?
Deduction for Mortgage Interest
In many cases, you can fully deduct the amount of your mortgage interest on your taxes. The IRS has a chart you can use to help determine if your mortgage interest is fully deductible.
AÂ mortgage interest creditÂ is available forÂ lower income homeowners for part of the home mortgage interest that they pay.
Credit for Energy-Efficient Home Improvements
Available untilÂ the end of this year, homeowners who have installed solar hot water heaters, solar electric systems, wind turbines, or qualifying energy-efficient home improvements can take a tax credit as part of the Residential Energy Efficient Property Credit.
The credit is for 30% of theÂ costÂ for these energy-efficient home improvements.
Deduction for Property Taxes
In addition to deducting your mortgage interest, you can also deduct the annual taxes you pay on your homeâ€™s value, called real estate taxes.
Deduction for Capital Gains
If you have used your home as your primary residence when you sell, you can exclude up to $250,000 in capital gains from the home sale on your taxes (or $500,000 if you are married filing jointly).
Let Us Help You Find the Perfect Home
If you have been considering buying a home and are ready to start your search, we can help you find the perfect home that falls within your budget and provide you with helpful real estate resources to make the journey to homeownership as smooth and enjoyable as possible.
Contact us today and letâ€™s talk about your goals for owning a home.