Top tax benefits of homeownership
As we are closing out 2023 and getting ready to start 2024, now is a good time to review what tax benefits most homeowners are getting.
There are several categories that you can look at to see if you will benefit from being a homeowner. According to RocketMortgage.com, here are some of them: Mortgage interest.
Most newer homeowners are paying more on the interest in their monthly mortgage payment than on the principal, so this could be a big tax benefit. Home equity loan interest – HELOC (home equity line of credit) loans are like a 2nd mortgage on your home.
Many homeowners can use it to make upgrades to their house and interest on these loans is deductible if you used it for that purpose. Discount points – for those of you that purchased in the last year or so these may apply, as these are the price paid to lower an interest rate on a loan. Property taxes – depending on where you live, your state and local property taxes may be a big source of tax deductions for you. Necessary home improvements – even if you did not use a HELOC to improve your home, some of your expenses in this category may be deductible. Home office expenses – as more and more people are working from home, this should not go unexamined in your search to find tax deductions. Capital Gains – a capital gain is the difference between the value of a home when you sold it versus when you borrowed it.
