Tax Deduction Benefits when Owning a Home

Tax Deduction Benefits Picture

The Holidays are upon us and Tax Season is around the corner.  Don’t be afraid, I’m here to save you money!

FIRST, are you aware of all your tax deduction benefits? Better yet, are you renting and have thought about purchasing a home in the near future? With rents as high as they are and mortgage rates at about 4%, it’s almost impossible not to.  Whether it’s a condo, townhouse or a single family residence homeowners get some VERY COOL tax deduction benefits when owning a home.

Owning a home is a valuable investment you can enjoy by living in it.  Although it may seem costly, the long term savings (as oppose to renting) and tax deduction benefits makes purchasing a home WELL WORTH IT!  Especially if you can afford it and you qualify…Why rent? Here are the benefits:

PROPERTY TAXES paid on your primary residence or vacation home are fully deductible.  Did you recently buy a home? When you’re in contract to purchase a home there are closing costs that are also tax deductible.  For example, any points paid toward your loan (or the ORIGINATION FEES) can be claimed no matter if they were paid by you or the seller.  Another big advantage is the ability to deduct the total mortgage interest paid on your loan every year.  That is HUGE TAX SAVINGS!

There is probably one tax benefit that most people forget about and that is being able to deduct your MOVING EXPENSES when moving for work related reasons.  Those that are in the military, for example, will get PCS orders to a new location.  Some may opt to buy a home right away instead of renting.  If you plan to stay for a while, why rent if you’re capable of buying? You can deduct your moving expenses including costs for storage when filing your income taxes at the end of that year.  The IRS offers form 3903 to those who qualify.

WANT TO KNOW other tax deductions and credits that most people aren’t aware of whether they own a home or not? Click on the below link.

9 Tax Tips you Didn’t Know – Turbo Tax

Other Tax Credits & Deduction – IRS

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