5 Tax Benefits of Owning A Home
Did you know that homeowners are eligible for tax breaks? Here are 5 tax deductions that you may qualify for as a homeowner. Talk to your tax preparer to see which applies to your situation.
Mortgage points deduction. Usually, mortgage points are paid to a lender at closing for lower interest rates. Since mortgage interest is deductible, the points you pay are also.
Mortgage insurance deduction. Private mortgage insurance (PMI) payments can be claimed as an itemized tax deduction, though certain income restrictions may apply.
Mortgage interest deduction. Several home loan types qualify for the mortgage interest tax deduction, such as loans for purchasing, building, or improving your home. Additionally, home equity loans, home equity lines of credit, and second mortgages may also be eligible. Talk to your tax professional for more details.
Home office deduction. If a portion of your home is used exclusively for business, you may qualify for a tax deduction.
Real estate tax deduction. You may qualify for a $5k deduction as a single filer or $10k as a joint filer if you pay property taxes.