What does it mean exactly when you get a tax break when owning a home? When you go to file your income taxes.

Answer 1

You are permitted to deduct the mortgage interest and the property tax from your taxable income (if you itemize your deductions, rather than take the standard deduction). It is called a "tax break" because other interest that you pay (on a credit card or a car loan) can not be deducted from your taxable income.

Answer 2

Yes; if you are a homeowner and have a mortgage, you are able to claim a deduction on your income tax return (form 1040) for interest that you paid the bank for your mortgage. Further, you can also deduct any amount paid for property taxes on your home. These are considered "itemized" deductions on your tax return.

Only you can elect to choose whether to itemize or use the "standard" deduction when you file. You should itemize if your total allowable itemized deductions are greater than your standard deduction. Note, however, if you elect to take the standard deduction, you cannot take the mortgage interest and property tax deductions as they can only be used in conjunction with itemized deductions on your return. Other examples of itemized deductions include: medical expenses, state & local income taxes, property taxes, and charitable contributions.

Answer 3

If you itemize your taxes,you get to claim the interest you paid on your mortgage as well as the real estate taxes paid.