Tax benefits if buying a home

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Tax benefits of buying a home:

If the loan is taken jointly, then each of the loan holders can claim a deduction for home loan interest up to 2 lakh each and principal repayment u/s 80C up to Rs 1.5 lakh each in their individual tax returns. To claim this deduction, they should also be co-owners of the property taken on loan.


Can you claim buying a new house on your taxes?

Unfortunatly, most of the expenses you paid when buying your home are not deductible in the year of purchase. The only tax deductions on a home purchase you may quality for is the prepaid mortgage interest (points). This means you report income in the year you receive it and deduct expenses in the year you pay them. 


How much does buying a house reduce your taxes?

The first tax benefits you receive when you buy a home is the mortgage interest deduction, meaning you can deduct the interest you pay on your mortgage every year from the taxes you owe on loans up to $750,000 as a married copul filing jointly or $350,000 as a single person.


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