Additional First Time Home Buyer Advantages
Home Improvements: If you purchase a fixer-upper, all improvements you make to your home from landscaping to new doors and windows can be deducted when you sell your home.
Energy Efficiency: Upgrading your home with energy-efficient appliances and home improvements—such as an insulation system—can offer an energy tax credit of up to $500.
Home Sale Profit: If you own and live in your home for at least two years before selling, much of the profit you make is tax-free. Up to $250,000 for single returns and up to $500,000 for married, joint returns.
Mortgage Insurance Premiums: This tax deduction ended in 2016 but is currently under legislative review for renewal. It offers a write-off for the premium paid if your down payment was less than 20% of the home’s cost.
The First-Time Homebuyer Credit is no longer available. It ended in 2010 and has not been renewed.
Now that you know the many tax breaks for first time home buyers, visit your local real estate agent at Coldwell Banker to learn how to take advantage of all the perks of being a first time home buyer.