Being a homeowner is great, but saving on taxes? Even better! Here are 6 tax benefits every homeowner should know about:
1️⃣ Mortgage Interest Deduction
Did you know the interest you pay on your mortgage could lower your taxable income? It’s a major perk of homeownership, so be sure to grab Form 1098 from your lender to claim this deduction!
2️⃣ The Augusta Rule
This little-known tax rule allows you to rent out your home for up to 14 days a year—completely tax-free! Whether it’s Airbnb or a short-term rental, you don’t need to report the income. Use those extra earnings however you’d like!
3️⃣ Property Tax Deductions
Depending on your state, you can deduct up to $10,000 ($5,000 for singles) in property taxes. Keep an eye on your local tax rules to make sure you’re getting the maximum deduction possible.
4️⃣ Home Equity Loan Deduction
If you’ve used a home equity loan to make improvements, you might be able to deduct the interest on that loan. It’s a great way to ease the cost of home renovations while saving on your taxes.
5️⃣ Capital Gains Exemption
Thinking about selling your home? If you’ve lived there for at least 2 of the last 5 years, you can exclude up to $250K ($500K for couples) of capital gains from taxes. This is a huge advantage for homeowners looking to sell!
6️⃣ Home Office Deduction
For those working from home, you can deduct a portion of your home’s expenses based on the area you use as an office. Everything from maintenance to utilities can be written off, helping you lower your tax bill while running your business from home.
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