A home provides many tax benefits, literally from the time you buy to the time you sell. The mortgage interest paid on a home loan up to $750,000 for a primary residence or second home is tax deductible every year, as is the local property tax. Other mortgage costs—including late-payment charges and early-payment penalties—are also deductible.
If you use a portion of your home for business purposes, you can take a depreciation deduction as well. Many federal tax benefits are also available from local and state tax agencies. Contact your local tax agency for more information.