5 Tax Breaks for Homeowners!!!

By
Real Estate Agent RS326383

With April 15 coming up on our heels next week here are a few things to consider.

Owning your own home is a big responsibility and at times it can be a lot of work. Fortunately, there are some great tax advantages for owning, in addition to having a place of your own. 

  1. Mortgage Interest Deduction: This has long been one of the most valuable deductions for homeowners, especially with a new mortgage where the payments consist of mostly interest. 

  2. Home Improvement Loan Interest: The same way your mortgage interest is deductible, so can be the interest on a home improvement loan. Consult your tax advisor because some wear and tear items such as carpet and paint may not qualify. 

  3. Mortgage Points/Origination Charges: These charges are treated similar to interest on the loan, making them deductible. Consult your tax advisor because the deduction is treated differently depending on if the charges were for a refinance or a purchase. 

  4. Energy Efficiency Upgrades: Up to 10 percent of the improvement cost can be applied as a tax credit, which is a direct reduction in the amount of tax you owe. There are a wide variety of items such as energy efficient appliances, furnaces, insulation, and windows. Be aware that this credit does max out at $500. 

 

  5. Capital Gains Exemption: If you were to sell a home and realize a profit you can claim that profit tax-free. Be aware there are many requirements for the exemption, such as the home must have been your primary residence for 2 out of the last 5 years. 

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Diary of a Realtor
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Rainmaker
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Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hi Alexa. Thank you for the reminders. Owning a home is a dream for many but has the other significant tax savings as well.

Apr 10, 2015 01:24 AM #1
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Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Alexa, great list of tax deductions for homeowners. As always I recommend speaking with a qualified tax professional. 

Apr 10, 2015 01:34 AM #2
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Rainer
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Alexa Sanchez

Realtor Extraordinaire
Contact me for Pocono PA Real Estate!
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