Property Taxes and Mortgage Interest
When you are calculating the total costs of homeownership, don't forget about the associated tax advantages. In most cases, both the amount paid in property taxes and mortgage interest paid on your primary residence are tax-deductible. You will be notified of these exact amounts by you lender at the end of each year, reported to you on a 1098 form.
This results in the homeowner's annual taxable income maybe substantially reduced.
Along with the tax advantages listed above, if your home is your primary residence, you maybe able to file for a homestead exemption. This reduces the taxable value of your home, reducing the amount of property taxes paid each year. This amount can vary by city or county but can be as much as a 15% discount on the appraised taxable value. Homestead exemption status should also be filed during the closing process on the home. It is filed with your county tax assessor’s office and the status can be verified each year by viewing the online tax appraisal on your property.