4. Home Improvement Deductions
Certain home improvements, such as installing energy-efficient systems or upgrading safety features, can qualify for tax deductions. Keep detailed records of improvement costs, as they can also help reduce taxable gains if you sell your home later.
5. Home Office Deduction
If you’re self-employed and work from home, a portion of your home expenses—such as mortgage interest, utilities, and repairs—may be deductible. Note that this deduction is not available to employees under the Tax Cuts and Jobs Act (2018–2025).
6. Home Energy Tax Credits
Investing in renewable energy systems like solar panels can earn you a federal tax credit. While many of these credits have expired or been reduced, state and local incentives remain available for energy-efficient upgrades.
Choosing the Right Loan and Lender
Securing the right loan is as critical as finding the right house. Comparing loan options, rates, and fees can save you thousands of dollars over the life of your mortgage. Loan Types to Consider • FHA Loans: Ideal for first-time buyers due to low down payment requirements. • VA Loans: Exclusive to veterans and active-duty military personnel, offering competitive terms and no PMI. • USDA Loans: Geared toward buyers in rural areas, offering low-interest rates and no down payment.
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