Tax Benefits of Homeownership

Owning a home isn’t just about cute porch decor and Instagram-worthy kitchens—it also comes with some sweet tax perks. Let’s dive into how Uncle Sam gives homeowners a break.

Mortgage Interest Deduction

Your mortgage may feel like a financial black hole, but there’s a silver lining: the mortgage interest deduction. If your loan is under $750,000, you can deduct the interest you’ve paid. Translation: a smaller tax bill for you. Cha-ching.

Property Tax Deduction

Those property taxes you begrudgingly pay? You can deduct up to $10,000 ($5,000 if you’re married filing separately) on your federal tax return. It’s like a small consolation prize for being a responsible adult.

Points for Points

If you paid points to secure a lower mortgage rate, good news—they’re deductible too. Consider it a bonus for playing the long game on your loan.

Home Office Deduction

Calling all remote workers! If you’re using part of your home exclusively for business, you might qualify for a home office deduction. That corner desk setup could do more than look trendy on Zoom.

Capital Gains Exclusion

Thinking about selling your home? If you’ve lived there for at least two of the past five years, you could exclude up to $250,000 of profit ($500,000 if married filing jointly) from capital gains tax. That’s a lot of extra cash for your next big adventure—or just for groceries.

The Fine Print

Not all these deductions will apply to everyone, and some come with strings attached. Keep receipts, stay organized, and consult a tax professional who knows their stuff (or at least won’t fall asleep mid-meeting).

Owning a home isn’t just a milestone—it’s a financial strategy. Make the most of these tax benefits, and your wallet will thank you come April.

Got questions about mortgages or homeownership? Let’s chat before tax season sneaks up on you.