Homeowners are well aware of the fact that owning a home has its tax advantages. All homeowners use their loan interest payments including closing costs and the use of a home office as a tax deductible items. To avail of these benefits and maximize your tax savings, it is best to hire a tax lawyer or accountant. Considering the complicated nature of Federal tax laws and their variations from state to state, these tax professionals are in the best position to give you advice regarding the matter.

 Interest payments on your principal residence are deductible from your gross annual income yearly. This translates into big savings, especially at the beginning of the mortgage when majority of your payments go towards the interest.

 Property taxes, even if the home is not your principal residence, are also deductible from your taxable income each year.

 Closing costs are also deductible from your gross income which results in paying lower taxes! You can generally save approximately more than 3% of your home’s price.

 If you use your home for business, you may be eligible to write off a portion of your home expenses. Estimate the percentage area in square feet of the section of your home that you use for business and use that percentage of your annual mortgage payment to determine your deductible amount.