If you are already a home-owner or you’re thinking about purchasing a home then there are multiple tax advantages that you can be of use for you. Surely you want to know all those advantages that you can have on taxes. There are several benefits of owning a house or two, and they can lead to tax deductions.

2. Here are three tax advantages of owning a
house. These facts will let you know about
the difference between owning your own
home and renting one.

3. Homeowners can easily make both
functional and cosmetic home
improvements, or renovate their
home, which wouldn’t be possible if
they are renting their home.
However, if you own your home,
you can make the all the changes
you like.
This is perhaps not known to many
people, or they are not made aware
of this fact because this is only
found out when one is selling their
home.
If you have owned your home for the last
five years or more than two years say,
leading up to the improvements and the
sale adds value to the home, elongate its
useful life or adapt to new uses of your
home, you are eligible to deduct these
costs. Keeping good records of all your
home improvements leads you to a
variety of benefits where you can deduct
them from selling price that helps reduce
your tax bill when you decide to sell your
home.

4. In case of majority of home owners while taking out a mortgage,
especially for the first time, the majority of your house payment
goes towards interest. But all of the interest is deductible if your
mortgage is more than $1 million dollars. If you have a home
equity line of credit balance or have refinanced your loan then
that amount is also tax deductible.

5. To gain a better rate on your home loan if you had paid points, you can claim
deductions on tax on the basis of those points. However, there are three
essentials; (i) in your geographic location, payment of points is a long-
established business, (ii) the points that you pay with are within median or
average range, (iii) and the points that you paid on the loans must be used to
build or purchase your primary residence. The same subtraction can be used
for home equity loans, points paid for refinancing your loan or the lines of
credit.