Tax Benefits of Buying, Owning and Selling a Home

Holden Lewis
By Holden Lewis 
Updated
Edited by Amanda Derengowski

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Uncle Sam wants you to own your home. The tax code grants tax benefits that reduce your costs of buying, owning, fixing up and selling a home. Here are brief descriptions of tax benefits of owning a home — the deductions, the credits and an exclusion that encourage homeownership.

Tax benefits of buying a home

The tax code sets aside a couple of benefits for buying a home.

Mortgage points: With the exception of very large loans, you may deduct the points you paid when you got your mortgage. In some cases, you may deduct the entire amount in one tax year; in other situations, you may deduct the points equally each year over the life of the loan.

Moving expenses: Tax breaks for moving expenses are limited. Only active-duty members of the armed forces are allowed to deduct moving expenses. The move must be because of a permanent change of station due to a military order.

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