It’s officially tax season, which means everyone’s digging through receipts, hunting for deductions, and trying not to leave money on the table.
And honestly? There’s no better time to talk about one of the biggest financial perks of homeownership.
Here’s something worth celebrating: being a homeowner comes with some pretty sweet tax advantages that can potentially save you thousands every year. I love reminding people about this stuff because it’s literally money back in your pocket.
Take a look through these potential deductions and see what might apply to your situation. And of course, always run things by your tax advisor to make sure everything’s handled correctly.
First-Year / First-Time Homeowner Bonus Deductions (if you purchased last year)
If you closed on your home last year, you may be able to deduct items like loan origination fees or points, prepaid mortgage interest, property taxes paid at closing, and certain closing costs. Most of these numbers can be found right on your Settlement/Closing Disclosure, definitely don’t skip that document when gathering your tax info. If you closed with me last year, you should’ve already received your Closing Statement via email for your convenience.
Mortgage Interest
You can deduct the interest you pay on home loans up to $1 million for your primary residence (plus a second home if you have one). The catch? You’ll need to itemize instead of taking the standard deduction. Do the math both ways before filing, sometimes itemizing gets you a bigger refund, sometimes it doesn’t.
Property Taxes
All your property taxes are fully deductible. Pro tip: when you bought your home, check your settlement statement. If you reimbursed the seller for taxes they’d already paid during the time you actually owned the home, you can include that in your deduction too.
Energy-Efficient Upgrades
This one’s actually a tax credit (which is even better than a deduction). If you’ve made certain energy-efficient improvements, such as a new water heater, furnace, windows, or roofing, you could get up to $500 directly off your tax bill.
Rental or Investment Properties
Own a rental property? You can deduct maintenance and marketing costs, mortgage interest, insurance, utilities, repairs, advertising, management fees, even depreciation. These deductions offset the rental income you’re bringing in.
Home Office
If you have a dedicated space that’s exclusively used as your primary place of business, those costs may be deductible.
Short-Term Rental Income
Here’s a fun one: if you rent out your home for 14 days or less during the year, that rental income is completely tax-free. Yes, really.
The bottom line?
Tax season is the perfect time to make sure you’re not missing any of the benefits that come with owning real estate. First-Year / First-Time Homeowner Bonus Deductions (if you purchased last year)
There may also be additional deductions for things like PMI, home equity loans used for improvements, certain refinance costs, or larger energy-efficient upgrades, so it’s always worth double-checking with your tax professional.
And if you need a solid CPA or accountant recommendation, just let me know, I’m always happy to connect you with someone great.
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