First-time home buyers' guide to taxes

[Bankrate.com]

First-time home buyers' guide to taxes
Tuesday April 4, 6:00 am ET
Kay Bell

There's nothing quite like purchasing your first home. You're on your own. You have a substantial financial investment.

And you now have some different tax considerations.

You're probably well-aware that homeownership affords you several new ways to save on the annual Internal Revenue Service bill.

"Homeownership is one of the best tax benefits that the federal government gives out," says attorney Robin Gronsky, principal of Gronsky Law Offices in Ridgewood, N.J. "People count on it. It's how they calculate their out-of-pocket costs in owning versus renting."

What you're probably less sure of is exactly how to go about taking advantage of all your new house-related tax breaks.

Many first-time homeowners will definitely enter new tax-filing territory with the very first return they file after moving into their new abode. For other new owners, the filing changes might take a little longer to show up.

But all will need to know some basic tax rules that could make their homes a great tax -- as well as an actual -- shelter.

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