Apr 28 2008
Homeownership offers tax benefits
What type of deductions can be obtained next season if we buy our first home this year?
There are many benefits to owning your own home, both large and small. Here are some of the most common, current tax-deductible homeownership expenses:
- Mortgage interest on loans (up to $1 million) is deductible for the year in which you pay it to buy, build or improve your principal residence.
- You can deduct points paid the year you purchase your home, regardless of who pays the points (buyer or seller).
- Real estate taxes paid at closing and/or annual property tax payments can be deducted if you itemize deductions.
- If you operate a business out of your principal residence, you can deduct a portion of your mortgage interest, insurance, utilities, repairs, and depreciation for that residence.
