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What are the tax benefits of owning a home?

By Bob Millaway, South Jersey Community Expert & REALTOR®

Homeowners can deduct mortgage interest on the first $750,000 of loan principal, deduct property taxes up to $10,000, and when you sell, exclude up to $250,000 of capital gains ($500,000 for married couples) if you have lived in the home for at least two of the last five years. These tax benefits make homeownership more affordable than renting in many cases.

Why It Matters

Tax deductions from homeownership can significantly reduce your annual tax bill. Understanding these benefits helps you appreciate the full financial picture of owning versus renting.

Related Questions

What should I look for during an open house? How much should I save for a down payment? What are closing costs and how much are they? What loan options are available for first-time buyers? What questions should I ask my real estate agent when buying?

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