How does buying a house affect my income taxes? Well, once you buy a house you can deduct off your income tax the interest that you pay on any mortgage. That deduction will go away as your income rises, and at a certain level you won’t get that benefit.
You are also in a position to deduct your real estate taxes. If you obtain a loan and you have to pay any closing costs or points on your mortgage, that’s considered an interest deduction and can be taken for the year in which you obtain your loan. It’s a prepaid interest charge, and it can be computed if you tell your accountant about it on your income tax for the year in which you buy your home.
So as a result to purchasing a home you have certain income tax deductions that you can take for your real estate taxes and any interest that you pay on any mortgage that you have (although that is limited or starts diminishing as you make more and more money). So if you have any questions about that, give us a call at (727) 847-2288.