As the April 18 federal income tax filing deadline quickly approaches, many owners of Atlanta real estate see the financial benefits of homeownership—savings that can add up to tens of thousands of dollars over several years.

“The mortgage interest deduction is one homeownership tax incentive that has been part of the tax code for nearly 100 years,” said Bob Nielsen, chairman of the National Association of Home Builders and a home builder from Reno, Nev. “Incentives such as this have helped millions of American families be able to afford a home of their own.”

The four main sources of tax savings for home owners include:

1. The mortgage interest deduction – if you itemize your federal income tax make sure to deduct 100 percent of your mortgage interest payments.
2. Deductions for real estate taxes – both state and local real estate taxes are also deductible on owner occupied homes.
3. Exclusions on capital gains for the sale of a principal residence – most taxpayers don’t have to pay capital gains on the profit of the sale.
4. Mortgage insurance premiums—generally required when a home is purchased with a down payment that is less than 20 percent of the mortgage loan amount—can be deducted from taxable income as well.

This information is provided by NAHB for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information in this release is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.