owning a home?

Question

what kind of tax benefits do you get for owning a home?

Answer 1

Your property taxes are tax deductible, as is the interest on your mortgage.

If you have a home business (and the rules of this are getting stricter all the time), you can deduct payment for that portion of your house used for business. See a tax consultant about this one.

Answer 2

Mortgage interest is deductible. Interest on a home equity loan or line of credit may be deductible. Property Taxes are deductible. If you run a business out of your home, a portion of repairs, maintenance, utilities, and other items become deductible.

You can get a homestead exemption that allows you to sell your home and not pay taxes on a gain of 250k as a single or 500k as a married couple.

Answer 3

Mortgage interest and property taxes are tax deductible. For most people those two add up to more than the standard deduction so you get a tax break there.

Also, if you have lived in your home for 2 of the previous 5 years immediately prior to selling it, up to $250,000 ($500,000 if married filing jointly) in gain is completely tax free. This can be a huge tax break.

Answer 4

If you itemize your tax return, the interests portion of your mortgage are tax deductable.

Please note that this may not apply to everyone. For example, the interests of a $100,000 loan at 5.5% is about $5500 a year. If I remember correctly, that is lower than standard deduction of single people.

In that scenario, there is no benefit to itemize and tax deductibility of mortgage interests is useless.

Please consult with you CPA. I don't recall the amount of standard deduction. And everyone is different.

Answer 5

Depending on the state you live in, you may get a homestead exemption for your primary residence property taxes.

Answer 6

It's an allowable deduction when you itemize your tax returns far more than your standard deductions.