Buying a home can offer some major tax benefits – see how you can take advantage of them as a new homeowner.
Tax Deductions and Benefits of Buying a New House
If you bought a home, you might be able to deduct costs like real estate taxes, property taxes, and mortgage interest paid.
The mortgage interest deduction is capped at interest paid on up to $750,000 of the principal owed. The maximum deduction for state taxes, state and local income or sales taxes, real estate taxes and personal property taxes are now limited to or capped at $10,000 in total.
You can claim the standard deduction if it is greater than the total of all your itemized deductions. The standard deduction amount for each filing status is as follows:
- Single: $12,400
- Head of Household: $18,650
- Married Filing Separately: $0 if spouse itemizes or $12,400 if spouse uses the standard deduction
- Married Filing Jointly: $24,800
- Qualifying Widow(er): $24,800
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