Tax Return Depressing? Owning a Home Could Help

Many Americans got some depressing news this week; either their tax return was not as large as they had hoped or, in some cases, they were told they owed additional money to either the Federal or State government or both. One way to save on taxes is to own your own home.

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.

Here are four items, and a quote on each, from the Briefing Book:

1. Mortgage Interest Deduction

“Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage. The deduction is limited to interest paid on up to $1 million of debt incurred to purchase or substantially rehabilitate a home. Homeowners also may deduct interest paid on up to $100,000 of home equity debt, regardless of how they use the borrowed funds. Taxpayers who do not own their home have no comparable ability to deduct interest paid on debt incurred to purchase goods and services.”

2. Property Tax Deduction

“Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.”

3. Imputed Rent

“Buying a home is an investment, part of the returns from which is the opportunity to live in the home rent-free. Unlike returns from other investments, the return on homeownership—what economists call “imputed rent”—is excluded from taxable income. In contrast, landlords must count as income the rent they receive, and renters may not deduct the rent they pay. A homeowner is effectively both landlord and renter, but the tax code treats homeowners the same as renters while ignoring their simultaneous role as their own landlords.”

4. Profits from Home Sales

“Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale. But homeowners may exclude from taxable income up to $250,000 ($500,000 for joint filers) of capital gains on the sale of their home if they satisfy certain criteria: they must have maintained the home as their principal residence in two out of the preceding five years, and they generally may not have claimed the capital gains exclusion for the sale of another home during the previous two years.”

Bottom Line

We are not suggesting that you purchase a house just to save on your taxes. However, if you have been on the fence as to whether 2017 is the year you should become a homeowner, this information might help with that decision.

Disclaimer: Always check with your accountant to find out what tax advantages apply to you in your area. 

What’s Your Home Worth?

Search for Your New Home

Listing types.

For Sale

For Rent

Land

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Distressed

Open House

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Price MaxAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Neighborhood

Address, MLS# or Keyword

View As: Thumbnails List

Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

20478 N 267th Avenue Buckeye, AZ 85396

$489,000

2 Beds

2 Baths

2,323 SqFt

Status Active

MLS # 6674280

Property Type Single Family Residence

Price Type --

The Ideal Location that Captures Arizona Sunsets from a Private Backyard Oasis w/No Neighbors to the West. This Well-Maintained Fiesta Model is a MUST SEE! The 2,323 Sq Ft Home Lives Large w/an Open Concept Floor Plan & Gourmet Kitchen offering Granite Counter Tops, Tiled Backsplash, Upgraded Staggered Cabinets, U/L Pull-out Shelves, Stainless Steel Appliances & Island w/Glass Display Cupboards. Guest Bedroom has a Walk-in Closet & Jack-n-Jill Bathroom. You will Appreciate the Den/Office & Large Great Room w/Sliders to the Extended Patio featuring an Amazing Outdoor Paradise. Retire to the Spacious Owner's Suite w/ Patio Access, Large Closet, & En Suite w/Dual Sinks, Soaking Tub & Shower. Laundry Room Provides Extra Cupboard/Counter Space & Sink. Diagonal Tiles, Woodgrain Laminate, & Plantation Shutters Enhance the Home. The 3-car Garage Offers Extra Storage & Room for your Golf Cart. Owners Installed a New HVAC System in 2023. Festival Ranch Special Assessment CFD has Been Paid in Full. Don't hesitate to see this Spectacular Home. It is time to start Enjoying the FIRST-CLASS Amenities offered in Sun City Festival. A Great Place to Call Home!

View Property

5346 W Posse Drive Eloy, AZ 85131

$489,000

3 Beds

3 Baths

2,139 SqFt

Status Active

MLS # 6674842

Property Type Single Family Residence

Price Type --

FULLY FURNISHED! Beautiful home w/detached casita (bedroom, bath & closet) perfect for friends visiting or a hobby room. Entertainers backyard features a gas fireplace, remote sun shades on patio, beautiful water feature & built in BBQ. Low maintenance synthetic grass, extended paver patio, orange & lime trees! Paver courtyard leading to casita & main entry. 2.5 car garage has a 4 ft ext., epoxy, built in cabinets, sink & service door w/a security door. Den has built in shelving. Spacious laundry room w/lot of cabinets. Bay windows in the master & guest room. Great room has a gas fireplace & built-in shelving. Too many upgrades to list them all. This home comes fully furnished, everything stays & is move-in-ready!

View Property

20925 E Sonoqui Drive Queen Creek, AZ 85142

$489,000

4 Beds

2 Baths

1,678 SqFt

Status Active

MLS # 6675565

Property Type Single Family Residence

Price Type --

Great home and property recently updated and ready to go. Flooring, bathrooms, and kitchen remodeled in 2022 as well as new roof. Open kitchen and living room area and split master bedroom floor plan. Popular Villages at Queen Creek sub-division with parks, pool and golf course. Come take a look and see.

View Property

5608 W Pontiac Drive Glendale, AZ 85308

$489,000

3 Beds

2 Baths

1,610 SqFt

Status Active

MLS # 6686350

Property Type Single Family Residence

Price Type --

Desirable single level home with Pool in Arrowhead Ranch. Conveniently located near Arrowhead Mall, Restaurants & Entertainment, with easy access to 101. Open concept floorpan, with fireplace in great room. HAVC new 2021. Save on APS bills with Solar! Great Schools. Extended Flagstone patio outside next to sparkling pool and Spa. Incredible potential and Priced to sell !!

View Property

16734 E La Montana Drive Fountain Hills, AZ 85268

$489,000

2 Beds

2 Baths

1,452 SqFt

Status Active

MLS # 6692422

Property Type Apartment

Price Type --

Updated ground floor Furnished, turnkey condo overlooking the pool and garden area for year round relaxing and entertaining. Enter into the open floorplan with living, kitchen, breakfast island and dining area. Offering split bedrooms and baths for more privacy plus a den/office/bonus room. Walking distance to Fountain, shopping, post office and restaurants. Private garage and storage room. Lovely small community with Community heated pool and spa and low monthly fees. Community exercize room, gazebo and BBQ grill. A list of personal items not included in sale will be provided in inspection period to buyer.

View Property

Wickenburg AZ 85390

$489,000

3 Beds

3 Baths

2,894 SqFt

Status Active

MLS # 6691196

Property Type Single Family Residence

Price Type --

TASTEFULLY REMODELED! Modern comfort meets convenience in this charming home nestled on a large corner lot. Providing 3 beds, 3 baths, lush front yard, & carport parking spaces. Highly upgraded interior boasts fresh neutral paint, ceiling fans, recessed lighting, and wood-look flooring w/plush carpet in bedrooms. The spacious living & dining room features a fireplace & picture windows for tons of natural light! The spotless kitchen boasts SS appliances, quartz counters, recessed lighting, a breakfast bar, & ample shaker cabinetry. Main bedroom has a walk-in closet & an ensuite w/dual sink. Versatile den is great for an office. Moving outdoors, tranquility awaits in the backyard! A covered patio, built-in BBQ, mature trees, storage shed, & a fenced area complete the picture. Move-in ready!

View Property

913 N Brown Avenue Casa Grande, AZ 85122

$489,000

5 Beds

3 Baths

1,950 SqFt

Status Active

MLS # 6696481

Property Type Single Family Residence

Price Type --

Step inside this beautifully updated property to discover a spacious and bright living area. The well appointed kitchen boasts granite countertops, new appliances and new flooring throughout the entire home. Retreat to the comfortable bedrooms, each offering a peaceful atmosphere and ample closet space. The beautifully landscaped front yard welcomes you home, while the covered patio provides a great space for outdoor relaxation and evening barbecues. The spacious backyard includes an accessory dwelling unit (ADU) in the back, perfect for hosting guests, using as a home office, or renting out for additional income. Conveniently located near shopping, dining, and entertainment options, this home is also close to schools, parks, and recreational facilities, with easy access to major highways for a quick commute to neighboring cities. Don't miss out on the opportunity to make this wonderful house your new home!

View Property

4051 E Meadow Drive Phoenix, AZ 85032

$489,000

3 Beds

2 Baths

1,346 SqFt

Status Active

MLS # 6697358

Property Type Single Family Residence

Price Type --

Welcome to your spacious oasis in the heart of convenience and comfort! Step inside and be greeted by the seamless flow of an open floor plan, where the cozy living area effortlessly blends with the dining space, creating an inviting atmosphere perfect for gatherings and relaxation. The cabinetry in the kitchen not only adds a touch of elegance but also provides ample storage for all your culinary essentials.Venture beyond your doorstep and find yourself within walking distance to schools and pristine parks, making it ideal for seeking convenience and community. Plus, with easy access to freeways, commuting is a breeze. Endless shopping and dining options at nearby Desert Ridge, where a plethora of restaurants and entertainment venues await to satisfy every craving and whim.

View Property

18525 N Madison Road Maricopa, AZ 85139

$489,000

4 Beds

2.5 Baths

3,274 SqFt

Status Active

MLS # 6693212

Property Type Single Family Residence

Price Type --

Welcome to your dream home in Maricopa Meadows! This 4 bed, 2.5 bath oasis boasts upgrades throughout, including new energy-efficient windows and a newly installed HVAC system upstairs. The loft features a surround sound system, perfect for entertainment. Master bedroom is conveniently located downstairs, while the remaining bedrooms upstairs offer walk-in closets and ceiling fans for comfort. The modern kitchen is equipped with new appliances, including a stove and dishwasher, making meal prep a breeze. Outside, the expansive backyard is a true paradise with a gated-off pool featuring a beautiful waterfall. The patio is equipped with misters, creating a refreshing retreat for outdoor gatherings. With upgrades at every turn and luxurious features both indoors and out,

View Property

4530 W Paradise Drive Glendale, AZ 85304

Open House

$489,000

5 Beds

4 Baths

1,700 SqFt

Status Active

MLS # 6700347

Property Type Single Family Residence

Price Type --

What a beautifully renewed home situated on a PRIME corner lot! Easy-care front yard provides a 2-car garage and an RV gate. Sleek interior showcases an open floor plan graced with bountiful natural light, wood-look flooring, and ceiling fans throughout. The kitchen displays recessed & pendant lighting, plenty of white cabinets, granite counters, stainless steel appliances, and a center island with a breakfast bar. Romantic primary retreat includes plush carpet and a trending barn door to the pristine ensuite comprised of dual sinks, step-in shower, and a walk-in closet. 2nd main bedroom has a private bathroom that is ideal for your guests! Expansive backyard offers a relaxing deck, covered patio, and a shimmering pool perfect for warm summer days! This rare gem is waiting just for you!

View Property

18185 W Windermere Drive Goodyear, AZ 85338

$488,995

3 Beds

2 Baths

1,672 SqFt

Status Active

MLS # 6571144

Property Type Single Family Residence

Price Type --

Stylish single-level home design with upgraded features throughout. The open-concept kitchen, dining room, and great room offer the perfect space for entertaining. The secluded primary bedroom suite provides a perfect getaway and is complemented by a luxe bath with dual-sink vanity, a glass-enclosed shower, and large walk-in closet. Additional highlights include expansive sliding doors to the desirable rear covered patio, a convenient drop zone, and centrally located laundry.

View Property

3319 W Verde River Road San Tan Valley, AZ 85144

$488,990

3 Beds

2 Baths

1,784 SqFt

Status Active

MLS # 6678861

Property Type Single Family Residence

Price Type --

Popular Arroyo floor plan featuring 3 bedrooms plus open study/den. , Beautiful kitchen with upgraded cabinets, granite countertops, plank tile flooring, upgraded lighting and plumbing fixtures, and much more. Our Master Planned community boasts a 7400 square foot community pool, 6 spacious parks, 3 basketball courts, sand volleyball, pickle, ball, bocce ball and corn hole. This community is an ideal location near the base of the San Tan Mountains and close to all the best shopping has to offer.

View Property