What is Tax Deductible for Homeowners?
Every new homeowner or buyer wants to know about the tax deductions they can claim. Did you know that your home offers a range of tax benefits?
This is the guide you need to read because the new Tax Cuts and Jobs Act (TCJA) has changed some of the tax breaks you have as a new homebuyer or long-time homeowner.
1. Interest on Your Mortgage
Most people don’t realize that within certain limits, you can deduct your mortgage interest.… Read the rest
Are you wondering if you’ll have to pay capital gains tax on your home sale?
What many people do not know is that a large portion of homeowners who sell their homes can avoid capital gains tax on their home sale.
How Much is Capital Gains Tax on the Sale of a Home?
When selling your primary home, you can make up to $250,000 in profit or double that if you are married, and you won’t owe anything for capital gains.… Read the rest
Homeowners are usually well informed about the home-related tax deductions that they can make at filing time. However, when purchasing a home, other costs can quickly accumulate. For buyers who can’t come up with a 20% down payment on the purchase price, they will have the added cost of private mortgage insurance (PMI).
The PMI is a policy that is taken out by the homebuyer to protect the lender against possible default on the mortgage loan.
PMI is Tax-Deductible
This income tax deduction was developed as an element of the Tax Relief and Health Care Act of 2006 and initially added to private mortgage insurance (PMI) plans issued in 2007.… Read the rest