Mortgage Interest Deduction: for most homeowners, mortgage interest paid on your principal residence or second home is fully tax deductible. Interest on a home equity line of credit is usually deductible up to $100,000, and should you take on additional debt to finance improvements to your principal home, that interest is typically deductible as well. Deductibility of interest expense is subject to certain dollar limits and its overall tax benefit may be limited depending on income level.
Property Tax Deduction: real estate taxes can be deducted for that period of time you lived in your home in the specified tax year.
Loan Points Deduction: you may deduct loan points paid on your first mortgage during the year in which you paid them.
Profit Exclusion Upon Sale: there are no capital gains taxes on the first $250,000 of profit for single homeowners and the first $500,000 of profit for married homeowners if you owned the principal residence for at least two years, and lived in it for at least two of the last five years of ownership.
Home Office & Moving Expenses Deductions: you may be eligible to take deductions pertinent to use of a home office or to moving expenses associated with job relocation. However, there are very specific criteria to qualify.