Unlocking the tax benefits associated with homeownership can significantly impact your financial well-being. Explore these key tax advantages that come with owning a home:
Mortgage interest and property taxes are two deductions you can claim as a homeowner if you itemize your deductions.
Some energy improvements you make to your home may qualify for tax credits.
You can rent out your home for up to two weeks and not claim the income. Keep track of how many days you rent out your home so you don’t go over the 14-day limit.
If you use a portion of your house exclusively as a home office, you may be able to deduct certain expenses such as mortgage interest, insurance, utilities, and repairs. To qualify for the deduction, you must use this portion of your house exclusively for business purposes on a regular basis.
If you sell your primary residence, you can exclude up to $250,000 ($500,000 if married filing jointly) of the gain. You must live in your house for at least 2 of the previous 5 years to qualify for the home gain exclusion.
Use this information as a starting point to better understand and leverage your home’s tax benefits. Make sure to reach out to our tax professionals with any questions.
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