A short but sweet post on the tax perks of owning a home. The biggest perks of owning a home come in the form of tax deductions. Are you making sure to itemize these deductions every year to reduce your taxable income?
Mortgage Interest – You are allowed to deduct your mortgage interest payments from your income each year. Mortgage interest payments can become six figures over the life of a loan. Don’t
miss out on deducting that amount from your income, who knows, it could possibly put you in a different tax bracket!
Property Taxes – The amount you pay in property taxes is deductible from your taxable income. While the national average of property taxes was $3,296 in 2017. That’s $3,296 (or whatever
your amount is) that you can deduct from your taxable income.
Capital Gains – When you sell your home you are eligible for up to $250,000 in tax-free gains, as long it is your principle residence. If you are a couple filing jointly you can exclude
up to $500,000 in gains (MOM: check to see if this is correct or the right words are used here, important to get this correct) from your taxable income.
These deductions aren’t reasons you should buy a more expensive home or take out a larger mortgage. But, if you are going to own a home, no matter the price, you can still file these deductions every year and reduce your tax payments.