What Are the True Tax Benefits of Owning a Home?

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    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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    Our agents write often to give you the latest insights on owning a home or property in the San Diego area.