As tax season rolls around, homeowners have a great opportunity to maximize deductions and understand how their home impacts their tax return. Whether you bought or sold a home this past year or are simply looking to make the most of your homeownership benefits, here are some key tax tips to keep in mind.

1. Mortgage Interest Deduction

If you have a mortgage, you may be able to deduct the interest you paid throughout the year. This applies to loans up to $750,000 for those who purchased a home after December 15, 2017. Be sure to check your Form 1098 from your lender for details on interest paid.

2. Property Tax Deduction

Homeowners can deduct up to $10,000 in combined state and local property taxes, including real estate taxes. Be sure to keep records of all property tax payments made during the year.

3. Capital Gains Exclusion

If you sold your home in the past year, you might be eligible to exclude up to $250,000 (or $500,000 for married couples) of capital gains from your taxable income—provided you lived in the home for at least two of the past five years.

4. Energy Efficiency Tax Credits

Did you make energy-efficient improvements to your home, like installing solar panels, new windows, or energy-efficient appliances? You might qualify for the Residential Clean Energy Credit, which allows a percentage of costs to be deducted from your tax bill.

5. Home Office Deduction

If you work from home, you could qualify for a home office deduction. This applies to self-employed individuals using a portion of their home exclusively for business. It can include expenses like a percentage of mortgage interest, utilities, and home maintenance.

6. Mortgage Points Deduction

If you paid mortgage points (prepaid interest) when you bought your home, you may be able to deduct the cost over the life of the loan or all at once, depending on the circumstances of your purchase.

7. Moving Expenses (for Military Members)

While most taxpayers can no longer deduct moving expenses, active-duty military personnel who relocate due to a permanent change of station can still deduct certain moving-related costs.

8. Keep Track of Home Improvements

While home improvement costs aren’t directly deductible, keeping records of major renovations can help reduce taxable gains when you sell your home. Improvements that add value to your property, like a new roof or remodeled kitchen, can be factored into the home’s cost basis.

Plan Ahead and Consult a Professional

Tax laws change frequently, so it’s always best to consult a tax professional to ensure you’re taking full advantage of any deductions and credits available to you as a homeowner.

Have questions about how buying or selling a home could impact your taxes? Let’s chat! I’m happy to help you navigate the real estate side of things so you’re fully prepared this tax season.

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