Top Homeowner Tax Breaks

Home Loan points deduction

You may be eligible to deduct 100 percent of your 'discount points' (fees paid to a lender in order to lower your mortgage rate). To qualify, the loan must be for your primary, full-time home. This also applies to a refinanced loan, but these will be deducted over the life of the loan, not all at once. Check with your tax accountant for full details.

Mortgage Interest Deduction

The interest you pay on your home loan (primary and any second home) is fully deductible on your federal taxes. If your loan includes private mortgage insurance payments, these are also deductible! Check the IRS website or your tax accountant for full details.

Property Tax Deduction

Any state, local or foreign real estate taxes you've paid on your primary or second residence are also deductible on y our federal income tax return. Check with your tax accountant for full details.

Home Office Deduction

If an area of your home is used exclusively as your principal place of business, you can deduct a portion of your total home expenses. Check with your tax accountant for full details.

Capital Gains Reduction

When you sell a home, the federral government taxes you on any profits(the difference between what you bought the house for and what you sold it for). That's the capital gains tax. You are allowed to deduct many of the costes related to the selling of your house from the associated capital gains, but reinvestment deferrals are no longer allowed. Check with your tax accountant for full details.

Capital Gains Exclusion

If the house you sell was your principal residence for two of the last five years, you can exclude up to $250,000 from your capital gains or $500,000 for married couples filing jointly. Check with your tax accountant for full details.

Moving Expenses

If you move more than 50 miles to take a new job, you may be able to deduct a portion of your moving expenses, including lodging expenses, transportation costs, and any storage fees. Check with your tax accountant.

There are many tax breaks that may apply to you, including most of your purchase costs when buying a home, so keep your receipts and check with your tax accountant for all details. A certified tax accountant can tell you what you need to get your tax breaks.