Homeowners should be aware of these tax deductions:
1. Mortgage Interest Deduction: Homeowners can deduct the interest paid on their mortgage, up to a certain limit, from their taxable income.
2. Property Tax Deduction: The property taxes paid on a primary residence can also be deducted from taxable income.
3. Home Equity Loan Interest Deduction: Interest paid on home equity loans or lines of credit may be deductible, subject to certain conditions.
4. Capital Gains Exclusion: If you sell your primary residence and meet certain criteria, you may be able to exclude a portion of the capital gains from taxation.
5. Energy Efficiency Credits: Some energy-efficient home improvements, such as solar panels or energy-efficient windows, may qualify for tax credits.
6. Home Office Deduction: If you use a part of your home regularly and exclusively for business purposes, you may be eligible for a home office deduction.
7. First-Time Homebuyer Credits: Some jurisdictions offer tax credits for first-time homebuyers, helping them offset some of the costs associated with buying a home.
8. Medical Home Improvements Deduction: Certain home improvements made for medical purposes, like adding ramps or modifying bathrooms for accessibility, may be deductible.
It's important to note that tax laws can change, and individual circumstances vary, so it's advisable to consult with a tax professional or accountant to get personalized advice based on your specific situation.