Learn how purchasing a home now lets you deduct mortgage interest, property taxes, and closing costs, saving you big when tax season arrives.

The end of the year is fast approaching. If you're thinking about buying a home or investment property, now might be the perfect time to take advantage of some big tax benefits. But how do you know if you’re getting the most out of your purchase? Let’s break it down.

#1. Mortgage interest deduction. One of the most popular benefits is the mortgage interest deduction. If you buy a home before December 31st, you can deduct the interest you paid on your mortgage. This can be especially helpful for new homeowners, as you’ll likely pay a lot of interest in the first few months of your loan. A simple deduction like this can save you money at tax time, so why not make the most of it?

#2. Property tax deductions. You can deduct property taxes you pay on your new home. These taxes can add up quickly, and getting a deduction for them is like getting some of your money back. If you’re planning to purchase a home by the end of the year, make sure to factor in this valuable tax break.

“The key to maximizing these benefits is to close before December 31st.”

#3. Home office deductions. More people than ever are working from home, and if you’re one of them, you could write off a portion of your property as a home office. If you buy a home now, you might be able to claim part of it as a deduction when tax season rolls around. It’s a simple way to save money while working from the comfort of your own home.

#4. First-time homebuyer benefits. If you're a first-time homebuyer, there are even more perks. Many states offer incentives, and there are federal credits available for you as well. It’s a great time to buy if you're just starting out on the property ladder, and these benefits could help you save more than you think.

#5. Closing cost deductions. When you close on a property, there are costs involved. The good news is that you can deduct many of these costs from your taxes. This includes closing costs and points you pay to buy down your interest rate. The more you pay upfront, the more you can save at tax time.

#6. Depreciation of investment properties. Depreciation allows you to write off the value of the property over time, but there’s a special tool called cost segregation. It lets you depreciate a big chunk of the property’s value in the first year. This could mean significant savings in your tax return.

The key to maximizing these benefits is to close before December 31st. But don’t do it alone—make sure you consult with a CPA to make sure these benefits apply to your specific situation. If you’re ready to take advantage of these tax benefits, you can call or text me at 480-267-9368. I’m here to help you find the perfect property and get the best deal.