I know that buying a new house is a significant and joyful milestone because I am a Homeowner
& Realtor. First-time homeowners must be aware of any tax incentives or deductions that may be
available to them because doing so can enable them to save money and reduce their overall tax
liability. In this brief informative piece, I'll outline 15 outstanding tax deductions that, in my
opinion, are the ideal start for first-time homebuyers.


Mortgage Interest Deduction: Deduct the interest paid on your mortgage loan, potentially
resulting in significant tax savings.


Property Tax Deduction: Claim a deduction for the property taxes you pay annually, reducing your
taxable income.


Points Deduction: If you paid points to obtain your mortgage, you may be eligible to deduct them
on your tax return.


Mortgage Insurance Premiums: Deduct the premiums paid for private mortgage insurance (PMI)
if your down payment was less than 20%.


Home Office Deduction: If you use a portion of your home exclusively for business purposes, you
may qualify for a home office deduction.


Energy-Efficient Home Improvements: Take advantage of tax credits for installing
energy-efficient upgrades such as solar panels, geothermal systems, or energy-efficient
windows.


Home Improvement Loan Interest Deduction: Interest paid on loans taken out for home
improvements or renovations may be tax-deductible.


Moving Expenses: If you relocate due to a job change that requires you to move a certain
distance, you may be eligible to deduct qualifying moving expenses.


Capital Gains Exclusion: When selling your primary residence, you can exclude a portion of the
capital gains from taxation if you meet specific criteria.


First-Time Homebuyer Credit: Depending on your circumstances and location, you may be
eligible for a tax credit for being a first-time homebuyer.


State and Local Tax Deductions: Deduct state and local income taxes or sales taxes, depending
on which option provides the greatest benefit.


Home Equity Loan Interest Deduction: Deduct the interest paid on home equity loans or lines of
credit, subject to certain limitations.


Casualty Losses: If your home suffers significant damage due to a natural disaster or
unforeseen event, you may be able to deduct the loss not covered by insurance.


Mortgage Prepayment Penalty Deduction: If you paid a penalty to prepay your mortgage, you
may be able to deduct it as mortgage interest.


Homebuyers' Assistance Programs: Depending on your location, you may qualify for tax credits
or deductions associated with specific homebuyers' assistance programs.


As a Realtor, I encourage new homeowners to be aware of the various tax deductions available
to them. By leveraging these deductions, homeowners can save money and reduce their overall
tax burden. It's important to consult with a qualified tax professional to ensure you take full
advantage of all the deductions you are eligible for

RAISING THE BAR FOR REAL ESTATE SERVICES

CONSIDER: Since I'm not a lawyer but your neighbor Realtor Associate, you should consult an
attorney and your CPA before making any decisions. Let’s start working together. Reach me at
305-776-5677 or register at www.juanmestre.com or email mestre.j@ewm.com.
Sourced and digested from several locations including but not limited to:
RisMedia for BHHS.com/blog, EWM Realty, Data from NAR & my knowledge