As a homeowner, you could be entitled to a number of tax deductions that renters don’t qualify for—but you may not even know what they are.
In this three-part series, we’ll explore the most common (and not-so-common) homeowner tax deductions available.
This isn’t tax advice. We’re not tax professionals; we’re Realtors®. If you have questions about your taxes as a homeowner, you should consult with a tax professional.
3 Common Tax Deductions for Homeowners
There are a number of benefits to owning a home, and tax breaks are just a handful of them. There are three fairly common tax deductions homeowners can take: mortgage interest, private mortgage insurance, and property taxes.
Mortgage Interest Deductions
If you’ve borrowed money to buy your home, you can most likely deduct the interest you pay on the mortgage. The cap is $1 million. In order to take advantage of it, though, you’ll have to itemize—not take the standard deduction.
Private Mortgage Insurance
If you’re paying for private mortgage insurance, or PMI, on your primary home, you could qualify to deduct its cost from what you’re paying taxes on. In some cases, you can take the deduction for a second home; however, that’s only the case if it’s not a rental house.
You can only claim PMI if you took out your loan in 2007 or after, though.
Most people can include state and local property taxes as itemized deductions.
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