Buying a home is a big deal. You get keys, a mortgage, a sudden interest in hardware stores…🛠️ and yes, a few tax perks.

Let’s talk about homeowner tax tips without putting you to sleep.

If you’re self-employed and have a dedicated space in your home that’s used only for work - congrats, you may qualify for the home office deduction.

There are two ways to claim this deduction, and thankfully neither requires a finance degree.🎓

You can go the detailed route, where you deduct a percentage of your actual home expenses: mortgage interest, insurance, utilities, repairs, and even depreciation. It’s based on how much of your home you use for work. More effort, but potentially more savings.

Or you can keep it simple with the simplified method. This lets you deduct $5 per square foot of your home office, up to 300 square feet, for a maximum deduction of $1,500. Less math, fewer headaches, still a nice tax break. 😎

When tax season rolls around, you get a choice:

Take the standard deduction (easy, low effort, very chill) or itemize deductions (a little more work, but possibly more money back).

Common itemized deductions for homeowners include:

If your homeowner expenses - like mortgage interest and property taxes you can add up to more than the standard deduction, itemizing could be worth it. If not, take the standard deduction and enjoy your free time. No guilt allowed.✨

Let’s say you used a home equity loan or HELOC to remodel your kitchen, add a bathroom, or finally fix that thing you’ve been ignoring for years. If the loan was used to improve your home, the interest may be deductible.

And those discount points you paid when you bought your home to get a lower interest rate? Yep - those might be deductible too. Turns out closing costs aren’t completely evil. 😈

If you’ve upgraded your home to be more energy efficient - think solar panels, new windows, heat pumps, or better insulation then you may qualify for tax credits.

You can qualify for some pretty generous tax credits, including up to 30% back for solar panels and other renewable energy systems, up to $2,000 for heat pumps and biomass stoves, and up to $600 for energy-efficient windows and skylights.

And here’s the best part - these are tax credits, not deductions. That means they reduce your tax bill dollar for dollar, which is way more exciting than just lowering your taxable income.

When you sell your primary home, you may be able to exclude:

Up to $250,000 of profit (single filers)

Up to $500,000 (married filing jointly)

As long as you lived in the home for at least two of the last five years, that profit could be mostly tax-free. That’s one of the nicest rules in the tax code - enjoy it.

Before you get too excited:

Your down payment ❌

Home insurance ❌

HOA fees ❌

Utility bills ❌

These don’t count as tax deductions. We know. We’re disappointed too.

Homeownership comes with plenty of expenses, but also some solid tax advantages if you know where to look. Keep your paperwork, save receipts for improvements, and don’t be afraid to ask a tax pro for help.🤝