Alex Featured on Mortgage Vault Podcast

Thinking about buying a home?

There are plenty of perks if you own a home. You don’t have to pay rent and you can decorate your home to suit your personality. But there are other benefits to homeownership – financial benefits.

If you rented in the past, you know very well that all your money went to a landlord, and none of it came back to you. But as a homeowner, you can receive tax deductions and credits. The Internal Revenue Service (IRS) provides several tax breaks to make homeownership affordable. Common tax deductions include those for mortgage interest and property taxes.

We’ll break down the top two tax benefits of homeownership below, but always be sure to consult with a tax professional about your specific situation and what you can and cannot deduct on both your state (if applicable) and federal returns.

Mortgage Interest Deductions

The mortgage interest deduction is arguably the most common for homeowners. This deduction also includes any interest paid on home equity loans and home equity lines of credit (HELOCs).

Property Taxes

Homeowners may be able to reduce their taxable income by deducting property taxes they pay on their homes. These days, the cap on how much you can deduct from your taxable income is $10,000 ($5,000 if married and filing separately) but can still help you save some money come tax time.

For questions on how to itemize your deductions, consult with a qualified tax professional.

Equal Housing Opportunity. Axia Home Loans is a registered tradename of Axia Financial, LLC. NMLS 27830.