Congrats on your new home! There are deductions available to you as a homeowner that can reduce your tax bill.
Here are some other things to keep in mind:
- If you itemize your deductions, you may be able to deduct property taxes, mortgage interest, loan interest, points, and home improvements required for medical care.
- Save receipts and records for all improvements you make to your home. While you can’t deduct home improvement expenses now, their cost can reduce your gain—along with any capital-gains tax—if you sell in the future.
- If you sold your home to buy this one, you won’t pay taxes on the first $250,000 (also known as a gain) as long as you owned the home and it was your main home for at least two years within the five years leading up to the sale. If you file jointly, you won't pay taxes on the first $500,000.
