Homeownership is important for the U.S. economy, and the government acknowledges its relevance by offering homeowners dedicated tax breaks to make owning a home just a little bit simpler.<\/p>\n\n\n\n
The number of homeowner tax breaks stayed relatively the same for several decades. However, the Tax Cuts and Jobs Act of 2017<\/a> provided a landmark overhaul of the U.S. tax code and directly impacted tax breaks for homeowners.<\/p>\n\n\n\n Still, there’s an opportunity to get a tax break for buying a house. And more importantly, they’re available for as long as you’re paying the mortgage, so you’ll save every year.<\/p>\n\n\n\n Ready to learn about the best tax breaks for new homeowners? Keep reading to see how much you can save.<\/p>\n\n\n\n Do you get a tax break for buying a house? Yes, you do. There are a number of items available for primary residences and new homeowners.<\/p>\n\n\n\n We’ve provided the most common tax breaks for new homeowners including how these deductions were impacted by the recent tax code change.<\/p>\n\n\n\n Previously, the mortgage interest tax deduction allowed homeowners to write off the interest costs of their mortgage. It was a politically popular deduction because many considered it to be a way to encourage homeownership by making it more affordable.<\/p>\n\n\n\n Until 2017, homeowners were able to deduct the interest on a $1 million mortgage on both a primary and second property. The new tax law passed in 2017 changed it slightly from 2018 forward. For homes purchased after December 15, 2017, Congress changed the figure to $750,000 for joint filings and $375,000 if you’re married and filing separately.<\/p>\n\n\n\n The change won’t impact homeowners in many parts of the country, but it will hurt you if you’re buying in an expensive state like California. Additionally, the mortgage deduction changes can cause the average homeowner’s tax deductions to drop by $100 in 15 states<\/a>.<\/p>\n\n\n\n This is because alterations to the mortgage interest tax deduction also impact available deductions available before the tax reform. For example, someone who owns a home at average area price in the Bay Area could lose $100,000 in deductions<\/a> over the duration of their mortgage.<\/p>\n\n\n\n While few people buy a home with tax implications in mind, the loss of deduction is something to consider if you’re buying in an expensive market like San Francisco or Seattle.<\/p>\n\n\n\n Until 2018, you were able to deduct some of your moving expenses if you moved to a new home to start a new job.<\/p>\n\n\n\n The new tax law eliminated this option, but it is still worth mentioning here because it remains available for active duty members of the armed forces.<\/p>\n\n\n6 Simple Tax Breaks for New Homeowners<\/h2>\n\n\n\n
1. Mortage Interest Tax Deduction<\/h3>\n\n\n\n
2. Moving Expenses<\/h3>\n\n\n\n