For New Homeowners

So you just bought your first home. Now you get to take all those great deductions people have been talking about.

Right? Well, sort of. First, you need to remember that the tax benefits of home ownership are all deductions, not credits. That means that the maximum benefit is limited by your tax bracket. If you're in a 15% tax bracket, your mortgage is cannot lower your taxes by more than 15% of the interest amount.

So, with that caution in mind, let's take a look at what you can now claim. Unless you belong to a church that requires tithing, this will probably be your introduction to itemized deductions, so I'll go over the whole form for you.

That's not all you need to know, but that's a good start, and from there you'll know what questions you need to ask.