Buying a home is a great investment, however, you need to itemize your taxes in order to take advantage of all the tax breaks that come along with it. It can be overwhelming, so be sure to check out the top 6 tax breaks for homeowners below:
- Mortgage Interest Deduction: This will be your highest tax break as a homeowner. When you first purchase a home, the majority of your monthly payment goes towards interest. Therefore, you can deduct all of the interest from your mortgage from your taxes. Refer to the Form 1098 that was sent from your lender which indicates how much money was paid in mortgage interest that year.
- Mortgage Insurance Premiums: Mortgages with a loan-to-value higher than 80% must also pay PMI (Private Mortgage Insurance). You may be able to deduct the amount that you paid towards this insurance.
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