Tax Benefits of Homeownership
Buying a home is one of the biggest tax decisions you'll make. Discover all the tax advantages available to homeowners.
Tax Benefits of Homeownership
Owning a home provides several valuable tax advantages that renters don't receive.
Mortgage Interest Deduction
Deduct interest on mortgages up to $750,000. This is typically the largest deduction for homeowners.
Property Tax Deduction
Deduct state and local property taxes up to the $10,000 SALT limit.
Mortgage Points
Points paid when obtaining a mortgage are generally deductible. Refinancing points must be spread over the loan term.
Home Office Deduction
If you work from home and have a dedicated office space, you may deduct a portion of home expenses.
Energy Efficiency Credits
- Residential Clean Energy Credit: 30% credit for solar panels, wind turbines, geothermal systems
- Energy Efficient Home Improvement Credit: Up to $3,200/year for insulation, windows, HVAC upgrades
Capital Gains Exclusion on Sale
When selling your primary residence, you can exclude:
- $250,000 of profit (single filers)
- $500,000 of profit (married filing jointly)
Requires living in the home 2 of the last 5 years.
Bought or sold a home this year? Make sure you're getting all the tax benefits you deserve.