What Are the Tax Benefits of Owning a Home?

Published On: November 1, 2021|Categories: Blog, Home Owners|Tags: , , |

What Are the Tax Benefits of Owning a Home?

There are many tax benefits to owning a home. In fact, there are so many that it can be difficult to keep track of them all. This guide explains four of the most important tax benefits of owning a home. Remember, though, you should absolutely consult with a tax professional; this isn’t tax advice, but a guide to the benefits that may be available to you.

What Are the Tax Benefits of Owning a Home?

The four biggest tax benefits of owning a home include:

  1. You can deduct mortgage interest
  2. You can deduct property taxes
  3. If you work from home, you can deduct your home office
  4. You get tax credits for making energy efficient upgrades

Here’s a closer look at each.

Tax Benefit #1 of Owning a Home: You Can Deduct Mortgage Interest

One of the biggest tax benefits of owning a home is the ability to deduct your mortgage interest. This deduction can save you a significant amount of money, particularly if you’re in a high tax bracket.

To deduct your mortgage interest, you’ll need to itemize your deductions on your tax return. This means that you’ll need to total up all of your eligible expenses and claim them on your return.

If you’re not sure whether you should itemize or take the standard deduction, it’s generally a good idea to do some calculations to see which option will save you more money.

Tax Benefit #2 of Owning a Home: You Can Deduct Property Taxes

Another big tax benefit of owning a home is that you can deduct your property taxes. This deduction can also save you a significant amount of money, particularly if you live in an area with high property taxes.

To deduct your property taxes, you’ll need to itemize your deductions on your tax return. This means that you’ll need to total up all of your eligible expenses and claim them on your return.

If you’re not sure whether you should itemize or take the standard deduction, it’s generally a good idea to do some calculations to see which option will save you more money.

Tax Benefit #3 of Owning a Home: You Can Deduct Your Home Office

If you work from home, you can deduct your home office on your taxes. This deduction can be extremely valuable, as it can help offset the cost of maintaining your home office.

To deduct your home office, you’ll need to itemize your deductions on your tax return. This means that you’ll need to total up all of your eligible expenses and claim them on your return.

If you’re not sure whether you should itemize or take the standard deduction, it’s generally a good idea to do some calculations to see which option will save you more money.

Tax Benefit #4 of Owning a Home: You Get Tax Credits for Making Energy Efficient Upgrades

If you make energy efficient upgrades to your home, you may be eligible for tax credits. These credits can offset the cost of the upgrades and save you money on your taxes.

To claim these credits, you’ll need to file Form 5695 with your tax return. This form will detail the eligible upgrades and the amount of the credit that you can claim.

Keep in mind that not all energy efficient upgrades are eligible for tax credits. Be sure to check with the IRS before claiming any credits.

Owning a home comes with many tax benefits. Be sure to take advantage of all the deductions and credits that you’re eligible for. By doing so, you can save yourself a significant amount of money on your taxes.

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Classic 3 Bedroom, 1 Bath home on Jasper's southeast side. Offers .89 acres and a full basement. $195,000 Pending

455 E Schnellville Road Jasper, Indiana

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Listing courtesy of Brian Uebelhor from SELL4FREE-WELSH REALTY CORPORATION.

This Elegant All-Brick Home offers 4 Bedrooms, 3 Baths, a RARE Walkout Basement, 2 Car Attached Garage, all Nestled in a peaceful setting. The beautiful kitchen, designed for both style and functionality, seamlessly connects to the open dining area, leading to a walkout deck—perfect for entertaining and grilling. A convenient main-floor laundry adds ease to everyday living. The master suite serves as a tranquil retreat, featuring a walk-in closet, double vanity and a beautiful walk-in shower. The modern walkout basement enhances comfort and entertainment with a Wet Bar with Island and Dishwasher, basement also includes a full bathroom, bedroom, and a theater room, complete with screen, seating, and projector. Step onto the tranquil patio, where a charming creek provides a serene backdrop, inviting you to unwind and embrace the peaceful surroundings. $420,000 Pending

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Listing courtesy of Opal Sermersheim from SELL4FREE-WELSH REALTY CORPORATION.

This beautifully maintained 3-bedroom, 2.5-bath split-bedroom home is sure to impress. A charming covered front porch welcomes you into a spacious living room, which opens seamlessly into an expansive kitchen and dining area. The kitchen boasts abundant cabinetry, a breakfast bar, a walk-in pantry, and brand-new hardware and appliances. The oversized dining area is perfect for hosting large gatherings and offers picturesque views of the private backyard. The freshly updated walkout basement features new flooring and trim in the rec area, playroom and half bath.  The cozy woodburning stove, during the cold season, will be much appreciated.  The laundry room and storage rooms completed the basement.   Step outside to relax on the covered deck or patio—both overlooking the expansive backyard. Additional perks include a storage shed and a basketball goal by the front driveway, 2 car attached garage.  Some Recent Updates: 2025 most basement with laminate flooring, trim, front wall B-Dryed, Sump Pump. 12/24 Kitchen Appliances, Cabinet Hardware, HVAC 2023, Water Heater 2020 $359,700 Pending

1735 W 5th Street Jasper, Indiana

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Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.