Don’t forget that you can take advantage of homeowner tax breaks.

I’m Rob Kuehne. I have a background in both real estate and mortgage, which means I get to help people buy their homes and build wealth through real estate. One advantage renting does not offer is the chance to pay less in taxes.

Two homeowner tax breaks do most of that work. One shows up every year you have a mortgage. The other shows up in the year you buy.

1. Mortgage interest

The interest you pay on your mortgage during the year can be deducted from your income at tax time the following year.

Your loan servicer reports that interest on Form 1098. If you itemize deductions, that interest can lower your taxable income. For a mortgage taken out after December 15, 2017, the deduction generally applies to interest on up to $750,000 of home debt. Older mortgages can have a higher limit. The IRS explains the rules in Publication 936.

That deduction is one reason the interest portion of a mortgage payment is not the same as rent. Rent is gone. Mortgage interest may come back to you, in part, when you file.

2. Some closing costs in the year you buy

The year you buy the home, you can claim some of your closing costs. That can also save you money on that year’s return.

Not every line on the closing statement qualifies. The amounts that often do are points you paid to get the mortgage, prepaid mortgage interest, and property taxes charged to you at closing. Fees such as the appraisal, inspection, and title insurance are usually added to the cost of the home instead. They are not a write-off that year.

What these homeowner tax breaks do not do

They are not automatic, and they are not a reason to buy a house you cannot afford. You only benefit from the mortgage interest deduction if your itemized deductions add up to more than the standard deduction. A tax professional, not a real estate agent, should confirm what applies to your return.

Even with that limit, these breaks are a real difference between owning and renting. Renters do not deduct rent. Owners may deduct mortgage interest, and they may deduct some of what they paid to close.

If you want to look at what buying in Plano, Dallas, or anywhere in the states of Texas, Florida, Colorado, New Jersey, Arkansas, or Illinois would mean for your payment and your first year in the house, send me a message. We can walk through the numbers before you make the move from renting to owning.

You can call or text me anytime on my cell phone at (214) 542-4095 or email me at Rob@TeamRobHomeLoans.com. It would be an honor to assist!