Tax Breaks For 1st Time Homeowners

Tax Breaks For 1st Time Homeowners

Are you thinking about purchasing your first home? Tax breaks available for first-time homeowners may make it worthwhile. Consult your accountant or tax professional about which of these conditions apply to you.

  • You may be able to deduct the total amount of interest paid on your mortgage.
  • If you make a down payment of less than 20% of the home’s purchase price, you will need private mortgage insurance – which may be deductible. Mortgage insurance on government-backed mortgages may also be deductible in the same way as mortgage interest.
  • You may be able to deduct local real estate property taxes you pay on your new home.
  • You may be able to deduct points and charges you paid to your lender to obtain the mortgage for your first home purchase.
  • If you choose to install renewable energy systems in your home, such as solar panels, you may be eligible for deductions of up to 30% of the installation costs.
  • If you purchased your first home for a job opportunity and moved more than 50 miles for it, you may be able to deduct your moving expenses.
  • If your new home required some upgrades, you may deduct the value of donated construction materials or demolition waste donated to a qualified charity.

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