5 Tax Benefits of Owning

1. Mortgage Interest Deduction

• If you have a mortgage on your property, you may be able to deduct the interest you pay on it from your taxable income. This deduction can be significant, especially in the early years of a mortgage when interest payments are highest.

2. Property Tax Deduction

• Property taxes can also be deducted from your taxable income. This deduction can be particularly beneficial if you live in an area with high property taxes.

3. Depreciation Deduction

• If you own rental property, you may be able to deduct a portion of the property's value as depreciation each year. This can help to reduce your taxable income and lower your tax bill. 

4. Capital Gains Exclusion

• If you sell a property that has been your primary residence for at least two out of the past five years, you may be able to exclude up to $250,000 (or $500,000 for married couples filing jointly) in capital gains from your taxable income. 

5. 1031 Exchange

• If you sell one investment property and use the proceeds to purchase another investment property, you may be able to defer paying capital gains taxes through a 1031 exchange. This allows you to roll over the proceeds from the sale into the purchase of a new property without recognizing the gains as taxable income. 

(Bonus)  Home Office Deduction 

• If you use a portion of your home exclusively for business purposes, you may be able to take a deduction for the expenses related to that space.