What Are the True Tax Benefits of Owning a Home?

    There are many San Diego area homes for sale. Click here to perform a full home search, or if you’re thinking of selling your home, click here for a free property valuation so you know what buyers will pay for your home in today’s market. You may also call me at (858) 699-3895 for a FREE home buying or selling consultation to answer any of your real estate questions.

    Many people are unaware of the many tax benefits that come with owning a home. Here’s a quick list showing all the ways owning a home can save you big money come tax season:

    • If you have paid any points to your lender, you can write that amount off your taxes.
    • You can write off property taxes.
    • Depending on your income level, you can write off any mortgage insurance if you put less than 20% down.
    • All home improvements you’ve made are eligible write-offs.

    As you can see, a majority of your monthly payments can be written off. Around here, the average home price is around $400,000, with $20,000 a year in interest. Since you can write that off, if you are in a 30% tax bracket, you’re going to save $6,000 in taxes!

    Most people in their first year of home ownership are saving about $5,000-$10,000 a year in tax write-offs. Instead of paying a landlord and throwing your money away on rent, invest in a home and put your money where it can grow.

    As always, if you have any questions about real estate in the San Diego area, don’t hesitate to call. Thanks, and have a great day!

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