Home Buying Tax Deductions Checklist

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Home Buying Tax Deductions Checklist

Mortgage Interest

  • After purchasing a home, interest payments on mortgages can be deducted

Property Taxes

  • All property taxes are deductible
    • Second home real estate taxes are also deductible

Home Sale Exemption

  • Last year home capital gains are not taxed if income is below threshold
    • $250,000 cap for a single person and $500,000 cap for a married couple

Private Mortgage Insurance (PMI)

  • If unable to make 30% down payment, lenders may require PMI
    • PMI is tax deductible if income is less than $100,00

Mortgage points

  • Points help drive down interest rates or help with origination fees
  • A point equals 1% of your loan amount or $1000 for every hundred thousand borrowed

Energy-Efficient Upgrades

  • Qualifying solar panels and water heaters receive a credit of 30%
  • Ceiling fans and other upgrades receive a $50 credit

Home Improvement Loan Interest

  • You can take out a home equity loans in order to get quick cash for home upgrades

Home Office Deduction

  • $5 can be taken for every square foot of office
    • Up to a maximum of 300 square feet