Owning a home is definitely the greatest achievement in our lives. The only problem is that it comes loaded with mortgage, interests and remodeling costs. Still how many of us are aware of the numerous tax advantages of owning a house. Yes, it is true that the government is willing to pay us for costs that we never intended to incur. Here is just a sample of how much you can save:

Interest & Property Tax

If you pay interest rate on your mortgage, which almost everyone does, you can file for a tax deduction on the 1040 tax form, under Schedule A. Moreover, you do not have to pay the property taxes as long as you report the total amount in the tax form. You can find the information for property tax by checking papers that you initially signed with the lender.

Renovation & Acquiring Costs

If you ever remodeled your home by taking a loan then you are eligible to get a tax break on any such renovations. If this seems interesting then it might be even more exhilarating to know that you are exempt from any kind of taxes for the costs that you incurred while acquiring the property. This can include any closing costs or the popular home equity loan.

Home Equity & Long Term Loans

Home equity loan allows you to deduct interest on the additional $100,000 of mortgage debt. Another good idea is to attain the lower monthly down payments that are distributed over a longer period of time but holds a great tax advantage. You can always use the extra cash on child’s education, car financing or whatever you like.

The Best of them All

Still, one of the best tax breaks of all times came with the 1997 tax law which dictates that anyone, who is the principal owner of a property and has been staying there for at least two of the last five years is not liable to pay any federal income tax, on the house sale of under $500000. If you are Single then the tax break is under $250000. Here, anyone can sell a home for a profit and if the sale is under $500000 they can keep their profits. Better yet, there is no law stating that there is any limit on how many times you can sell and buy.