First-time homebuyers will reap these serious tax benefits!
We’ve all heard how owning a home can benefit you financially. The majority of that focus is on the long-term implications of homeownership, which underscore how much you’ll save by building equity in your home over the years rather than throwing money away on rent. There are some immediate financial benefits of owning your own home, too!
During tax season, first-time homeowners will be pleased to discover these financial benefits of owning their homes.
- Mortgage Interest Deduction: When you file your income taxes, you’ll be able to deduct all the money that you paid in interest towards your mortgage over the course of that year. When you first buy your home, you pay a significant amount of interest so this can be a serious saver for the first few years.
- Real Estate Tax Deduction: As you pay your mortgage lender your monthly dues, you’ve likely also been paying real estate tax, which your lender puts into escrow to pay out at tax time. All of the money you paid towards your real estate taxes can be deducted when filing your income taxes next year.
- Other Tax Deductions: Most non-homeowners claim the standard deduction ($6,300 for individuals, $12,600 for married couples) because their charitable giving, medical expenses, and other tax-deductible expenses don’t surpass the standard deduction amount. When you own a home, your mortgage interest usually easily puts you over the standard deduction, meaning you can actually benefit from your other tax-deductible expenses.
If you’re ready to start realizing all of these benefits at tax time—not to mention the multiple other benefits homeownership offers—visit Ranch & Coast Mortgage Group Inc. in Solana Beach, California. As mortgage experts, we’re here to help you get the right loan product to bring your dreams of first-time homeownership to life!
