What Are the Tax Benefits of Buying a Home?

Thank you for sharing the wonderful article about the benefits of buying the house.

Hi there! Oh wow, thank you for pointing out that buying a home is a good way to reduce our property tax, especially if we already gave monetary contribution form our salaries. My son has been thinking of getting himself a small house next year. I’ll ask him to keep this information in mind so he’ll make the right purchase later.

I’ll be sure to look into purchasing a house in the coming years. My spouse and I want to move but we are unsure if it will be beneficial for us financially. I’m glad that your article mentions how owning a home will count towards property tax deduction.

I actually didn’t know that I could deduct the amount paid toward property taxes. My husband and I are thinking about buying a house but we didn’t know the benefits of doing so, so I’m glad you talked about how it can help with the tax deduction. I will keep these things in mind and tell my husband about them, thank you!

Hi Ashley,  TSAHC’s down payment grant program is available to home buyers that have previously owned a home. To find out if you’re eligible, please visit http://www.readytobuyatexashome.com and take the eligibility quiz.

I already received the MCC. I’m thinking of selling my home and purchasing a home. This would be my first purchase. Are there any programs available that would help me like MMC did?

Thank you in Advance,

Ashley Guerin

I wanted to learn more about the tax benefits of buying a home since there’s a place I’m interested in purchasing. I didn’t know that it could possibly reduce my federal income taxes by thousands of dollars each year. That’s an amazing benefit that makes investing in a house more appealing.

I like that you mention that buying a home also deducts the amount paid towards property taxes, which can in turn reduce the amount you’d pay in income taxes.  That’s a good incentive to buy a home right now rather than just rent one.  I have been looking into buying a home because I am moving in the next few months, and it’s important to me that I find a realtor that can help find the right home for me.

That’s really cool that when you get an MCC you can use up to $2,000 of the interest paid on the mortgage as tax credit. My husband and I want to get a home now that we have two kids. It’s good to know that there are lots of benefits for it, so we’ll have to find somewhere to buy a house from.

I appreciate this information about the benefits of buying a home. It is good to learn that there is a property tax deduction. It would also be nice to reduce the amount paid in income taxes. Something to consider would be to use a realtor in the home buying process to make things go more smoothly.

Hi Irene, thanks for your question. We’re not aware of any grants to tax credits that are available to help with the legal costs of transferring a property. However, if you have any additional legal needs, you may be able to qualify for low-cost or pro bono legal services to help:  http://www.txcourts.gov/programs-services/legal-aid/

I took out a loan in 2015 to pay a lawyer to have my parents home transfer it to me and my husbands name.  All my siblings had to sign to get this done.  Is there any type of credit I can take.

This is some great information, and I appreciate your point that buying a home can give you many different tax breaks. My husband and I just finished college, and we’re considering what our next step in life will be, and we’ve been thinking about buying a home. Knowing that doing so could give us more tax breaks is a comfort, and I think we’ll go forward with it. Thanks for the great post!

I’m trying to come up with a good way to get a place to stay. I didn’t know that buying in home provided tax benefits! I’ll have to see what my wife thinks about it.

Most people I think are glad that when they buy a home that they can get some money back in taxes. Sometimes, people just forget that there are a lot of ways we can get tax breaks. Thank you for listing out the tax breaks you can get when buying a home!

Hi Rose, thanks for your question.  Yes, an MCC enables you to take a portion (up to $2,000) of the interest paid on your mortgage as a tax credit every year over the life of the mortgage.  Click on the link below to learn more about the benefits of TSAHC’s MCC program:

http://www.tsahc.org/homebuyers-renters/mortgage-credit-certificates

If you have any questions, please feel free to contact our Homeownership Hotline at 877-508-4611.

Thanks for bringing up the MCC! We’re planning on buying our first home this year, and I’d definitely love to get a tax credit from it. When you said that you can take a portion of the annual interest as a tax credit every year is that for the life of the mortgage? If so, I really hope that we can qualify for it because that would be a lovely benefit in our homeownership!

Thanks for your tips. I’m in the process of buying a house. I didn’t know that I could deduct any of my payments from my taxes though. It is probably one of the few things about having a mortgage that would make me happy.

Many people are not aware of the different tax benefits for buying a home. Thanks for mentioning property tax deductions. Great advice!

Hi Cherie, thanks for your question. The link below provides a list of housing expenses that can and cannot be deducted.  The down payment is listed as an expense that cannot be deducted. http://www.irs.gov/publications/p530/ar02.html