Homeownership comes with a variety of benefits, but you shouldn’t forget about the tax benefits it can provide. Every homeowner has the chance to benefit from tax breaks, but many homeowners miss out on some of those great opportunities. Understanding how to leverage your homeownership to save on taxes can save you money and help you to feel more financially secure in your home.
Mortgage Interest and Property Tax Deductions
Almost everyone who buys a home has to take out a mortgage to make it happen. While a mortgage and the interest it brings with it can be a frustrating part of home ownership, it can also help you to get a break on your taxes. If you have a home debt of up to $750,000, you can qualify for some major tax deductions on your interest. You can also deduct the property tax you pay which can have a pretty big effect on your taxes overall. Don’t forget to check out those deductions when you file your taxes each year.
Green Energy Deductions and Credits
If you invest in green energy for your home, you can qualify for even more tax credits. And that’s in addition to the savings you will see on your utilities each month as you produce more of your home’s energy yourself. You may not just save on your federal taxes because of your solar system. States like Florida also have their own tax benefits when you install solar.
With benefits like that, there is no reason to avoid getting more out of your home with solar panels that produce your energy for you.
Mortgage Insurance Deductions
If you put down less than twenty percent for your down payment on your home, you likely have to pay private mortgage insurance. This insurance is there to protect your mortgage company if something happens to the home. Luckily there are tax advantages that you should use to get deductions for at least some of the money you spend on private mortgage insurance each year.
Homeownership is already great, but when you factor in the tax advantages it can give you, it gets even better. No matter what home you live in or what your mortgage looks like, you can save money on your taxes because of your home ownership. It’s your job to make sure that you take full advantage of your available options.
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