If you’re a homeowner, you could be eligible for huge tax savings when you file. While we are tax professionals, we do know that the IRS offers tax breaks to people who buy and own homes throughout the fiscal year.
(We recommend that you speak with a licensed tax professional if you’re buying a home in the Tampa Bay area or if you already own one. We can’t give you tax advice, so it’s always a good idea to work with an expert!)
Tax Breaks for Buyers and Homeowners
Many homeowners find that they can deduct several home-related expenses. Typically, deductions are available for every type of residents, including single-family homes, townhomes and condos, and mobile homes.
Unless your loan is over $1 million, you may be able to deduct the interest you pay on your mortgage. (Some people with over $1 million in loans can still make deductions, but there are limits.)
Often, homeowners are able to deduct points in the year they’re paid. However, points can make your tax calculations a bit more complicated – and many people are confused on when they can claim points. (This is another reason it’s a good idea to talk to a tax professional.)
A substantial part of each payment and make goes toward property taxes, which are commonly held in escrow until they need to be paid. Usually, property taxes are an annual deduction that you can use every year for as long as you own your home.
Finally, if you sell a home and purchase a new one, you could be eligible for deductions based on the profit you make selling your old house.
Are You Buying a Home in Tampa Bay?
If you’re thinking about buying a home in the Tampa Bay area, we would love to help you.
Call us at 727-584-8480 or 813-961-6000. You can also contact us online if it’s easier. We’re ready to help you find your next home, so browse our Tampa Bay real estate listings today!