Buying

4 Tax Breaks for Homeowners

By April 1, 2019 No Comments

It’s that time of year and many of you are undoubtedly putting the final touches on your tax return. Whether you have hired a professional accountant or if you are tackling those taxes yourself, make sure to make the most of your home. Here are four tax breaks to consider
if you are a homeowner:

  • Interest expense: The most common tax break, all homeowners can deduct interest paid toward a mortgage. Homeowners can deduct interest expenses on up to $750,000 of mortgage debt from their income taxes, though when they itemize these deductions, they forgo the standard deduction of $12,000 for individuals or married couples filing individually, $18,000 for head of household & $24,000 for married filing jointly.
  • Capital appreciation: While the home increases in value during ownership these gains are not taxed at the federal level. For Single status homeowners, you can exclude up to $250,000 in home appreciation when figuring capital gains. An exclusion of $500,000 for filing jointly.
  • Secondary residences: The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
  • Home Office: If you work from home, you may take deductions for your home office. Although mortgage principal is never deductible, only interest, you can also deduct a portion of property tax, utilities, homeowners insurance, etc.

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