: Most homeowners can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately). Your lender will report this to you via IRS Form 1098 every January.
: You can deduct up to $10,000 ($5,000 if married filing separately) for a combination of state and local income taxes or sales taxes, and your local property taxes.
: When you eventually sell your primary residence, you may be able to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from your income, provided you lived in the home for at least two of the five years before the sale. Find more details on IRS Topic No. 701 .
: While general maintenance isn't deductible, keeping receipts for major "capital improvements" (like a new roof or addition) can help increase your home's "cost basis," potentially reducing your taxable gain when you sell. Essential Documents to Keep
: Shows the final taxes and points paid at the time of purchase.
: For verifying payments made outside of escrow. Topic no. 701, Sale of your home | Internal Revenue Service
: Mailed by your lender annually to report mortgage interest.
: These are calculated based on your home's assessed value multiplied by local tax rates. It is highly recommended to check your specific County Assessor's website to estimate these costs before purchasing.