What are the tax breaks for homeowners?

In California, homeowners have access to several tax breaks. One of the most popular tax breaks is the Mortgage Interest Deduction. This deduction allows homeowners to deduct the interest of their mortgage on federal income taxes. Another major tax break for homeowners is the Homeowner’s Property Tax Exemption. This exemption allows California homeowners to deduct up to $7,000 of their property taxes from their state income taxes every year. One final tax break for California homeowners is the Capital Gains Exclusion. This exemption is for homeowners who have sold their home and any profit they make from the sale may be excluded from their federal taxes. Any home sale with a net profit of $250,000 or less for individuals and $500,000 for married couples filing jointly qualifies for the exemption. These tax breaks can add up to thousands of dollars in savings for the homeowner. While these tax breaks differ slightly from state to state, California’s homeowners are able to take advantage of some of the most beneficial tax breaks available.

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