Owning a home can be a great investment, but did you also know it comes with tax benefits? Whether you have owned a property for a few years or recently got yours last year, don't forget you could get a heftier refund if you deduct the following items when you file your taxes:

1. Mortgage interest: If you have a mortgage on your home, you can take advantage of the mortgage interest deduction. You can lower your taxable income through this itemized deduction of mortgage interest. In the past, homeowners could deduct up to $1 million in mortgage interest. However, the Tax Cuts and Jobs Act has reduced this limit to $750,000 for a single filer or married couple filing jointly. If you are married and filing separately, the deduction limit is $375,000 for each party.

2. Discount Points: If you paid any points to get a lower rate while you were buying your home, you can deduct the cost of the discount points.

3. Property Taxes: You can't run away from taxes, even at your new house. But, you can always take advantage of deducting up to $10,000 of property taxes as a married couple filing jointly, or $5,000 if you are single or married and filing separately. That's a nice break from Uncle Same there!

4. Mortgage Insurance: Private Mortgage Insurance (PMI), is another expense some homeowners may have depending on their type of loan. You can deduct this from the itemized section of your tax return.

5. Home Office Expense: If you operate a business in your residence, you may be able to deduct some of the expenses of maintaining that space. The IRS requires that you use your home office for regular and exclusive business use in order to qualify for a deduction. If you only use the office space when it is convenient, or just for working from home for your employer, that will not qualify.

As always, I recommend you check with your tax preparer or CPA for more advice on these deductions. But at least you have an idea of where you can start! 

If you're not a homeowner yet and are still on the fence about becoming one, I can help you get there! Simply contact me today and let's get you started toward the American Dream of homeownership!

Michelle Schacherer, Pacific Trust Mortgage

https://pacificdirectmortgage.com/