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.