Karen Scopetski - Coldwell Banker Residential Brokerage-Vice President, MA real estate single family


Buying your first home is probably one of the biggest purchases you’ll make in your life. But, it does come with its advantages. Among them are tax breaks and deductions that you can take advantage of to save money if you play your cards right.

In today’s post, I’m going to cover some of the tax breaks and deductions that first-time homeowners should seek out this tax season to help them lower their tax bill.

Mortgage points

While earning points is a good thing on the basketball court, it can be a financial drain on a mortgage. Mortgage points are what buyers pay to the lender to secure their loan. They’re usually given as percentage points of the total loan amount.

If you pay these points with your closing costs, then they are deductible. Taxpayers who itemize deductions on their IRS Form 1040 can typically deduct all of the points they paid in a year, with the exception of some high-income taxpayers whose itemized deductions are limited.

PMI costs

If you’re one of the many people who made a down payment of less than 20% on your home, odds are that you’re going to be stuck with PMI, or private mortgage insurance, until you pay off at least 20% of the loan balance.

The good news is that homebuyers who purchased their home in the year 2007 and after can deduct their PMI premiums. However, the state on premium insurance deductibles is something that frequently comes up in Congress, so homeowners should ensure that these deductions are still valid when filing their taxes.

Mortgage interest

Mortgage interest accounts for the biggest deduction for the average homeowner. When you receive your Form 1098 from your lender, you can deduct the total amount of interest you’ve paid during the year.

Property taxes

Another deductible that shouldn’t be overlooked by first-time buyers is local property taxes. Save the records for any property taxes you pay so that you can deduct them during tax season.

Home energy tax credits

Some states are offering generous tax credits for homeowners who make home improvements that save energy. There are a number of improvements you might qualify for, including things like insulation and roofs, as well as photovoltaic (PV) solar panels.

IRA Withdrawals

Many first-time buyers withdraw from an IRA account to be able to make a larger down payment on their home or to pay for closing costs. In most other cases, withdrawing from an IRA will count as taxable income. However, if your IRA withdrawal is used toward a down payment or closing costs, the tax penalty is waived.


Keep these tax breaks and deductions in mind this tax season to help you save money and get a larger refund.


This Single-Family in Northborough, MA recently sold for $543,988. This Colonial style home was sold by Karen Scopetski - Coldwell Banker Residential Brokerage.


25 Otis St, Northborough, MA 01532

Single-Family

$524,900
Price
$543,988
Sale Price

8
Rooms
4
Beds
2/1
Full/Half Baths
Warm & welcoming sun filled colonial with inviting farmers porch, beautifully maintained overlooking Berberians farm! White cabinet packed eat in kitchen includes, new appliances, recessed lighting & dining area. Formal Living room & formal dining room with hardwoods. Family room with brick fireplace, built-in bookcases, recessed lighting & hardwoods. Light & bright interior. Master with double closets, master bath w/shower & jacuzzi tub. 3 other generous size bedrooms. Recent 30-year architectural shingled roof. New Anderson windows. Low maintenance vinyl siding w/vinly shakes on front, high efficiency Burnham gas boiler. whole house fan, two car garage with loft for storage .Enjoy the picturesque expansive level private fenced yard w/gorgeous in-ground pool, brick patio, new liner & new shed. Top rated schools! A commuter's dream - close to Wegmans ,Rt. 9, Rt. 20, all major highways & commuter rail.

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291 West St, Northborough, MA 01532

Single-Family

$849,900
Price

12
Rooms
4
Beds
2/1
Full/Half Baths
Charm, elegance & style describe this exceptional custom built Tony Abu Colonial located on desirable West St! The first floor offers a gracious foyer, study with beautiful built ins, large formal living room, formal dining room w/chair rail & tray ceiling, attractive cabinet packed kitchen w/sky-lit dining area. Spacious vaulted ceiling family room with new carpet, fireplace & skylights. Mudroom, half bath & walk-in closet complete the 1st floor. Second floor boasts master suite, huge walk in closet. Sky-lit master bath w/jacuzzi tub, double vanity, granite & separate shower. 3 additional nice sized bedrooms freshly painted , laundry room & renovated full bath. Fully finished lower level w/daylight full size windows includes, playroom, exercise room & media room. Upgrades include furnace, A/C, new exterior paint & interior. This impeccable home offers gorgeous 1 plus acre lot, private country setting, your own get-away while still close to major routes & Northboro town amenities!
Open House
No scheduled Open Houses

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20 Hamilton Rd, Northborough, MA 01532

Single-Family

$419,900
Price

7
Rooms
4
Beds
1/1
Full/Half Baths
Well maintained renovated cape located in desirable Northgate neighborhood!. Shows pride of ownership. Inviting sunny living room with picture window & hardwood flooring. Renovated kitchen w/stainless steel appliances is open to dining area. Bedrooms on both levels including two master options. New remodeled main bath. Large master on second floor with new carpet. 4th bedroom & half bath complete 2nd floor. Custom barn doors on closets in 2 bedrooms. New trim & baseboard thru-out, skim coated walls & ceilings. Most windows replaced. Low maintenance vinyl siding. Screen porch with new ceiling over looks back yard. . Converted from oil to gas; new furnace & water heater. New architectural roof, added insulation & new door in basement. Expanded driveway. A newly fenced very private yard with new brick patio backed by town owned conservation land. Town sewer & water! Located with in walking distance to Proctor elementary school, near Ellsworth McAfee Park & Wegmans shopping!
Open House
Saturday
October 31 at 12:00 PM to 1:30 PM
More Open Houses
Cannot make the Open Houses?
Location: 20 Hamilton Rd, Northborough, MA 01532    Get Directions

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20 Hamilton Rd, Northborough, MA 01532

Single-Family

$419,900
Price

7
Rooms
4
Beds
1/1
Full/Half Baths
Well maintained renovated cape located in desirable Northgate neighborhood!. Shows pride of ownership. Inviting sunny living room with picture window & hardwood flooring. Renovated kitchen w/stainless steel appliances is open to dining area. Bedrooms on both levels including two master options. New remodeled main bath. Large master on second floor with new carpet. 4th bedroom & half bath complete 2nd floor. Custom barn doors on closets in 2 bedrooms. New trim & baseboard thru-out, skim coated walls & ceilings. Most windows replaced. Low maintenance vinyl siding. Screen porch with new ceiling over looks back yard. . Converted from oil to gas; new furnace & water heater. New architectural roof, added insulation & new door in basement. Expanded driveway. A newly fenced very private yard with new brick patio backed by town owned conservation land. Town sewer & water! Located with in walking distance to Proctor elementary school, near Ellsworth McAfee Park & Wegmans shopping!
Open House
Saturday
October 31 at 12:00 PM to 1:30 PM
More Open Houses
Cannot make the Open Houses?
Location: 20 Hamilton Rd, Northborough, MA 01532    Get Directions

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