WAXHAW, NC – If you’re new to homeownership, congratulations! However, no matter where you are in your ownership journey, you should be aware of the many different tax benefits that you can, and should, be taking advantage of.

1– Mortgage interest

This is usually the most significant tax break you’ll receive since a big chunk of your monthly payment goes directly towards paying off interest for a while after your purchase.  All of the interest you pay during the tax year will be deductible.

2 – Discount points

You might have paid to have your interest rate reduced when you initially purchased your home. If you purchased a new home or built one, you may be able to deduct the points in the year you paid them if the home is your primary residence and the amount you paid was deemed a reasonable amount.

If you refinanced, you’re also eligible to deduct points but deducted over the life of the loan

3 – Mortgage Insurance Premiums

If you put less than 20 percent down when you purchased your home, odds are you’re paying mortgage insurance premiums. That premium is actually tax-deductible.

4 – Energy-efficient upgrades 

You’re eligible to gain a tax credit on the cost of purchasing and installing energy-efficient items that generate electricity! You can also gain credit for geothermal heat pumps and even solar water heaters! Energy efficiency is key to benefiting from your tax returns!

In Part B, we’ll talk about tax perks when you sell your home! For more information, contact me at teamtonyg@atlanticbay.com or (704) 778-6205