In addition to the personal satisfaction
you may get from owning your home, remember that as a homeowner,
you’re entitled to valuable tax breaks from the government.
You can deduct mortgage
interest on your federal tax return, and often from
your state tax return as well
You can deduct property
tax on your federal tax return
You may be able
to exclude
capital gains
on the sale of your home when you file
your tax return
Tax rules and exclusions can be complicated. One way to get a handle on what you can and can’t do is by looking at publications the IRS provides on home ownership.
More resources
If you’re a first-time homebuyer, you might want to get a copy of IRS Publication 530, "Tax Information for First-Time Homeowners." Or, if you’re selling your house, look at Publication 523, "Selling Your Home," to learn about the tax benefits you may be entitled to.
