Tax Benefits for Homeowners

As tax season approaches, it’s the perfect time to explore how homeownership can help you save money on your taxes. Owning a home comes with significant financial benefits, including various deductions and credits that can reduce your overall tax bill. From mortgage interest and property taxes to potential energy-efficient property credits, this guide covers the key tax advantages available to homeowners and explains how to maximize your savings this tax season. 

Standard vs. Itemized Deductions

Homeowners can reduce their taxable income by either claiming the standard deduction or itemizing specific expenses. The option you choose depends on your financial situation and the deductions available to you.

Standard…

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What Are Capital Gains?

Capital gains refer to the profit you make when you sell a property for more than you paid for it. Similar to selling stocks, the gain is the difference between the purchase price and the sale price. However, real estate has unique considerations. For example, the original price includes the cost of certain improvements, so keeping receipts for renovations is essential.

How to Calculate Capital Gains on Real Estate

Capital gains in real estate are based on the adjusted cost basis of your property rather than the purchase price alone. Here's how to calculate it:

  1. Start with the Purchase Price
    This is the total amount the property sold for, not just the cash you brought to the closing table.

  2. Add the…

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