Owning a home can come with a handful of tax benefits. Here are the top 4:
- The mortgage interest deduction: One of the most significant tax benefits of owning a home is the mortgage interest deduction. This allows you to deduct the interest you pay on your mortgage from your taxable income, which can save you a significant amount of money.
- The property tax deduction: In addition to the mortgage interest deduction, you may also be able to deduct the property taxes you pay on your home. This can provide an additional tax savings, and it can help offset the cost of owning a home.
- The capital gains exclusion: When you sell your home, you may be able to exclude a certain amount of the profit from your taxable income. This is known as the capital gains exclusion, and it can provide a significant tax break when you sell your home.
- The home office deduction: If you use a portion of your home for business purposes, you may be able to claim the home office deduction. This allows you to deduct a portion of your mortgage interest, property taxes, insurance, and other expenses from your taxable income.
Overall, owning a home can provide a number of valuable tax benefits. These can save you money and help offset the cost of owning a home, so it’s worth considering the tax implications when you’re deciding whether to buy a home.
**This is not financial or tax advise, please consult with your CPA or tax professional**