Tax Benefits of Home Ownership
When you buy, own and sell a home, you may be eligible for tax benefits that can make home ownership one of the most profitable, if not the most profitable, investments you make. The following list outlines the tax rules applicable to homes:
The home mortgage interest deduction: The rules for obtaining a deduction for mortgage interest paid.
The deduction for real estate taxes: How to determine if you can deduct property taxes paid on your home.
Settlement or closing costs: A variety of deductions may be available when you purchase your home, including deductions for settlement or closing costs, such as interest, property taxes and points.
The home office deduction: How to determine if you are eligible for the home office deduction if you use part of your home for business purposes.
Deductions available when you sell a home: Several tax advantages may be available to you when you sell your home, including the total exclusion from income taxation of any gains realized from the sale of your home.
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