Despite what some in the media and politics say, owning a home is still a great way to collect benefits through taxes. Regardless of your home-owning history, or lack thereof, the IRS has a list full of deductions which can save you money, which can make your investment much more favorable to renting. If a family claims tax breaks related to the house besides the standard deductions, it could help save a lot of money right off the bat. Make sure to acknowledge charitable deductions and other similarly applicable ways to get a tax break, even if it might require you to spend a bit more time on your tax return.
If you are refinancing, or have just bought a home, you may be able to save money from mortgage interest. Last year taxpayers received about $100 billion back in mortgage interest breaks, it is worth looking into alongside your mortgage insurance, which can also be deducted.
If you are a lower-income homeowner, you may also be entitled to special property taxes if applicable in your municipality. Many people of all incomes can also take advantage of deducting local and state property taxes from their federal return.
If you have done some renovations, such as installing solar power, home office projects, or medically necessary changes, you may be eligible for tax breaks. Even if your renovation does not count towards a tax break at this time though, should you decide to sell, you may be able to deduct your new renovations that boosted your home’s value, make sure to keep your receipts! If you moved because of a job relocation, or other important reason, you may also receive deductions for the costs of moving.