Homeowner Tax Exemption
Tax season is here, and we want to share important tax exemptions with you – a new homeowner. There are so many benefits to building a home, and this exemption is one of them!
Did you know that you can deduct your mortgage interest on your new home each year when filing itemized taxes? The mortgage interest deduction allows you to reduce your taxable income by the amount of money you’ve paid in mortgage interest during the year. So if you have a mortgage, keep good records — the interest you’re paying on your home loan could help cut your tax bill.
The key benefit of taking the mortgage interest deduction is that it can decrease the total tax you pay. Let’s say you paid $10,000 in mortgage interest and are in the 32 percent tax bracket. You’ll lower your tax bill by $3,200 after subtracting the $10,000 deduction from your income.
Click this link for more on this homeowner tax exemption: https://www.nerdwallet.com/blog/mortgage-interest-deduction/