If you’re thinking about making the switch from apartment living to buying a home of your own, now might be a great time to buy – and it’s worth noting that many homeowners are eligible for substantial tax breaks.
We’re not tax professionals, though, so we’re not giving tax advice. We’re Tennessee real estate experts, so it’s always a good idea to talk to a tax professional to get tax advice!
With that said, owning a home may afford you tax privileges that you just don’t get when you’re renting.
Possible Tax Benefits for Homeowners
While everyone’s situation is different, many homeowners find that they’re able to reap the benefits of homeownership, which often include:
- Mortgage interest. For most people, the majority of a monthly mortgage payment goes toward paying off interest. Often, that interest is deductible (unless your loan is over $1 million, in which case the amount you can deduct is limited).
- Points. If you paid points to get a better rate on a mortgage, you could claim them on your tax return as a deduction. However, it’s a good idea to talk to a tax expert about when you can claim your points.
- Property taxes. Because some of your monthly loan payment likely goes toward property taxes, where it sits in escrow until they’re due, you can typically deduct them each year for as long as you own the home.
- Profits. If you’ve made a profit on the sale of one home as you moved into another, you might be able to deduct some of the profits you made. However, these instances are limited to meeting certain requirements or if you’ve sold under certain circumstances. (Again, that tax professional can give you the right guidance!)
Are You Moving to Williamson County or Davidson County?
Call us at 615-425-8049 or contact us online to tell us what you want from your next home. We’ll find it!