Hopefully, you will are taking advantage of the tax deductions allowed to you regarding owning your own home. These deductions include:
Property tax deduction: Any money you pay to city, county, and state property tax assessor is tax deductible.
Mortgage interest deduction: Your mortgage interest on both first and second loans is tax deductible. Any points you paid to get a lower interest rate are deductible. Private mortgage insurance payments are also deductible.
Closing costs: If you purchased your home or re-financed your mortgage in 2015, some fees to the mortgage lender are deductible. Ask your tax professional for guidance. Also, you may deduct some moving expenses, such as items for your home office, if you have one. Be sure to show your tax professional your H:UD-1 form.
Home office deductions: If your home is your principle place of business and you meet other IRS guidelines for home businesses, you can take a deduction on workspace dedicated to your business. The space cannot be used for any other purpose. You can also depreciate that portion of your home over 39 years. All improvements to the workspace are tax deductible. In addition, your security expenses, phones, internet costs, computers, insurance and utilities can be deducted or depreciated according to IRS allowances. Percentages and limits apply, so consult with your tax professional.
Energy Star: If you purchased an energy efficient system or appliance for your home and it meets government Energy Star standards, you may deduct a portion of your expenses. Save your receipts.
Property sales deductions: If you purchased a home, occupied it as a primary residence and sold it in 2 years, you could be eligible for some capital gains exclusions up to $250,000 if you're single, or $500,000 if you're married.
There may be other deductions for you to take advantage of that are associated with your home, so be sure to save all receipts throughout the year for repairs, parts, purchases, remodeling, etc. Some allowances and special circumstances apply, so be sure to talk to your tax professional.
Save your tax records up to 7 years, as you have to be able to support the deductions you take with documentation, such as receipts, credit card statements, cancelled checks, and online banking.
Ongoing tax deductions are another advantage to home ownership. If you are renting, it's your landlord who is benefitting from them.