Many people think that they do not have enough deductions to file an itemized tax return, so they just take the standard deductions and file their taxes as fast as they can so they can get their refund. Many people do not know that there are tax deductions that they can receive from owning their home and many times these deductions will be enough to allow the homeowner to itemize their tax returns and receive a larger refund. It is important to remember that you may not qualify for all of the different tax deductions that are available, but your tax consultant will be able to help you determine which ones you are eligible for.
The main reason that most homeowners itemize their taxes is so that they can deduct the interest that they paid on their home loan over the year. You can deduct the interest paid from your first or second home loan. When many people purchase a home they will buy down points so that they can have a lower interest rate for the length of their mortgage loan. Many times you will be able to deduct the amount that you spent when you bought down the interest points.
You may also be able to deduct your local and state property taxes. However, you will only be able to deduct these taxes for the year that you paid them. There are many advantages to owning a home and if you know what tax deductions you can take, you will be able to reap the benefits by having larger tax refunds at the end of the year.
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Posted by Michael 
October 2007