Ah, tax season. It's a time of reflection, a time of organization, and for some lucky folks, it can be a time for celebration.

We all want to come out ahead when we do our taxes, and it may surprise you to know that owning a home can benefit you when it comes to tax time.

First of all, we always recommend that you consult a tax professional in all tax-related matters. But, we can tell you that there are some potential tax perks to owning a home vs. renting.

Perk 1: Got a mortgage? Then, you get deductions!

In the tax world, there are deductions and there are credits. Deductions reduce your adjusted gross income, which in turn reduces your tax liability. Less tax liability, fewer taxes owed. This is the fun part of taxes...well, as fun as you can get!

In most cases, homeowners can deduct their mortgage interest. In January, after the end of the tax year, your lender will send you IRS Form 1098, detailing the amount of interest you paid in the previous year to use to determine your deduction.

The money you pay in home property taxes is deductible, too. If you pay your taxes through a lender escrow account, you’ll find the amount on your 1098 form. If you pay directly to your municipality, you will have personal records in the form of a check or automatic transfer.

Perk 2: Home office write-offs

Corvallis is located on the Willamette River, which delivers both natural beauty and water activities. So, whether you'd like to relax riverside with a glass of local wine, or go kayaking, this location gives you all the benefits of a riverside community.

A Vibrant Community

One of the most popular home features of 2020 was a home office...or two! With many people working remotely, having a space to work at home has become a necessity. And here's the great part: it may be deductible if you own your home. Here are the eligibility requirements for the home office tax deduction. Basically, you need to own your home and have your home office be the primary place of business.

Perk 3: Homeowner credits

Credits represent money taken off of your tax bill. Think of them as coupons. Homeowners who install solar panels, geothermal heat systems, and wind turbines may receive a tax credit worth up to 26% of the cost. Energy-efficient windows and heating or air-conditioning systems are also eligible for the credit. Check the IRS’s energy incentive list to see if you qualify.

We know rents have been going through the roof. If you'd like to become a homeowner, then we'd like to help you. We have great communities in the PNW with new homes you'll love.

 

Become a Holt homeowner, and enjoy all the benefits of homeownership. A happier tax season is just the beginning. Contact us to get started.

 

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For more than three decades, Holt Homes has built new construction homes for families in Oregon and Southwest Washington. The quality and experience of our people, the ease and efficiency of our approach, and the livability of our communities work hand-in-hand to make Holt Homes the largest locally-grown home builder in the region. For more information, live chat or call us at (971)-231-5560.

*All selections subject to change depending on availability