Learn About Tax Breaks for Buying, Selling and Owning a Home
When it comes to buying and selling property, there are plenty of tax benefits regular Americans don’t know about.
Read on to learn about how existing tax laws may help you keep more money in your pocket as a current or future homeowner!
Like most homebuyers, you probably have a mortgage loan. And one of the best tax breaks for homebuyers is the deduction on mortgage “points.” Here’s how it works:
When you take out a mortgage, you have the option of paying mortgage point fees to lower your interest rate and monthly payments. Each discount point equals 1% of the mortgage total. If your mortgage loan is $300,000, you can pay up to $3,000, or 100 points.
If you meet the IRS’ requirements, you can get a home buyer tax deduction in the amount you paid for the mortgage points.
And this isn’t just a tax break for first time home buyers: You can also take advantage of this home buying tax benefit if you have refinanced your mortgage or taken out a home equity line of credit.
Unfortunately, the federal government’s first-time homebuyer tax credit is no longer available. However, your state may offer a first-time homebuyer tax deduction or other special tax benefits. In Florida, for example, the Florida Housing Finance Corporation offers several mortgage assistance programs for first-time buyers. So be sure to do your research!
Whether you are a first-time buyer or veteran homeowner, you can take advantage of tax benefits available to all homeowners. Click “Next” to learn more about tax benefits for current homeowners.
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