Tax Benefits of Home Ownership Are Almost Too Good to be True

Owning a home is a great way to invest in your future, but itโ€™s also a great way to invest in your present. There are tons of fantastic tax benefits to home ownership, which means if you play your cards right, youโ€™ll be smiling all the way to the bank.

The Tax Benefits of Home Ownership

Most notably, you get a tax break on mortgage interest. The bulk of your monthly payment ends up going directly to interest, and itโ€™s all deductible (unless, of course, your loan totals more than $1 million).

If you paid points to get a better interest rate, youโ€™ll get to deduct them in the year you paid themโ€”as long as the loan is for your main home. Check with your lender to make sure that your loan meets all of the qualification requirements; if it does, you may be able to deduct points all in one year.

Property tax is also deductible, whether the house is your primary residence or a vacation home.

While this list isnโ€™t intended to be financial advice, and your best bet is to consult with a tax professional, many homeowners are able to reap the tax benefits of home ownership using these deductions.

Ready to Talk about Main Line Homes?

Call us at (610) 608-3119 or let us know what youโ€™re looking for online. Weโ€™ll show you our extensive list of homes for sale in the Main Line area and use our experience to help you find the perfect new home.

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