Tax Advantages to Home Ownership

Even though tax day has come and gone, the tax advantages
of owning a home stick around all year long. As a refresher, here are seven of
the most popular:

1. Mortgage interest deduction: Couples filing jointly can
deduct the interest they pay on up to $750,000 of mortgage debt ($375,000 if
married filing separately).

2. Real estate taxes: You can deduct state and local
property taxes up to $10,000 per year ($5,000 if married filing
separately).

3. Mortgage points: If you pay discount points when you
take out your mortgage, you can deduct those, too!

4. Tax-deductible mortgage insurance: The IRS counts
private mortgage insurance, VA loan funding fees, USDA loan guarantee fees, and
FHA loan up-front mortgage insurance premiums as tax-deductible. There is
always a chance this deduction may expire, so check the tax rules before
counting on these savings.

5. Medically necessary home improvements: You can deduct
medically necessary home improvements that help you, your spouse, or dependents
who live with you. Examples include expanding doorways, installing ramps or
lifts, lowering cabinets, and adding railings.

6. Moving expenses: Moving expenses are tax-deductible but
only if you’re a member of the armed forces and moving because of a change of
station.

7. Capital gains: The capital gains tax exclusion says you
don’t have to pay taxes on the first $250,000 of profit from selling your home
if you’re single or $500,000 if you’re married so long as you’ve lived in your
home two of the last five years.

There are more tax breaks for where these came from, so
it’s always best to work with a tax professional at tax time if you own a
home.

Save this article for later, and definitely reach out if
you have questions or would like to talk over the details of your situation
more fully.

-Megan Stultz

Call or Text 936-537-2587

Megan@MeganStultz.com

www.Southern-Luxury.com