While you probably already know that most homeowners are entitled to certain tax privileges, you may not know exactly what they are – but here’s a quick breakdown of the tax advantages to owning a home.
Remember, though, we’re North Florida Realtors®, not tax professionals. You should always consult a tax professional for specific tax advice that’s tailored to your unique situation.
Tax Breaks for Homeowners in North Florida
Everyone’s situation is different, but many homeowners are eligible for certain tax benefits that make homeownership a more cost-effective way of life than renting is.
Some of the tax benefits for homeowners in North Florida include deductions for:
- Property taxes. Much of a monthly loan payment often goes to payment of property taxes. The funds typically sit in escrow until the annual property taxes are due. In situations such as these, property taxes are often deductible; they’re usually deductible for the duration of the time you own your home.
- Mortgage points. If you’ve paid points to get a better rate on a mortgage, you may be able to claim them as a deduction. It’s a good idea to talk to a tax professional about when you can claim them.
- Mortgage interest. Many people pay a large amount of mortgage interest with each payment. Unless your loan is over $1 million, you may be able to deduct that interest (and if your loan is more than $1 million, you could still deduct some interest; the IRS does put limits on it, though).
- Profits. If you’ve profited on the sale of your old home and moved into a new one, you might be able to deduct some of the profits. However, every situation is different, so it’s best to talk to a tax expert.
Are You Moving to North Florida?
If you’re looking for a Lake City home for sale, equestrian property in North Florida or any other type of property, we’d love to help you find something that meets your needs.
Call us at 386-243-0124 or contact us online to tell us what you’re looking for and we’ll build a custom search for you right away.
