Every year, millions of Americans buy a home, and many of those are doing so for the first time. With this in mind, it's important to note that some of those people might not know that owning their own home often entitles them to take a number of tax breaks that might not have been available to them when they were simply renting. For that reason, those who take the time to brush up on the various allowances available to them will likely be able to save significant sums of money when filing season rolls around.
It's important for Americans to keep in mind that tax preparation is an important part of owning one's own home, because consumers who don't do so may end up costing themselves thousands of dollars per year that they didn't have to give to the Internal Revenue Service. For instance, homeowners can currently deduct all the money they paid in interest over the course of a year on their mortgages. Many can also write off property taxes and the points they paid at the closing table in certain circumstances as well.
What else should they know?
However, it's important to note that not all owners are created equal in the eyes of the IRS. First-time homebuyers will usually have a slew of different tax breaks available to them that those who are classified as long-time resident homebuyers do not. In certain instances, owners might also want to take the time to adjust the amount that's being withheld from their paychecks to help them deal with these costs as well. This is because certain aspects of homeownership are not subject to withholding, and therefore if they don't take that simple step they might end up owing the IRS a lot more come filing time than they might have originally thought.
Those who are unsure about the various tax benefits that might be available to them for just about any situation might want to keep in mind that working with a reputable, professional income tax preparer will likely go a long way toward helping them identify, qualify for, and take advantage of a number of tax deductions they might not have even known about. The tax code is often so difficult to wade through that even people who think they know what they're doing may be missing a number of benefits.