Tax Benefits of Owning a Home

It’s that time of year again…tax time! If you purchased a home in the last year, you might be in for a pleasant surprise. Check with your tax accountant, but you may be able to deduct the following items:

• Mortgage Interest Payments: Mortgage interest is usually deductible on a primary residence, as well as on a second home that meets certain requirements.
• Mortgage Insurance Payments: aka MIP, PMI
• Points (Loan Discount or Mortgage Origination Fees): The points that you paid to your lender upon purchase of a home, or even the points that were paid by the seller on the buyer’s behalf, may be tax deductible as a prepayment of interest if certain basic requirements are met.
• Property Taxes: These annual taxes are based on the assessed value of the property and may lead to a considerable deduction each year.
• Home Equity: The interest paid on home equity loans could mean tax benefits that are not available through other credit sources.