Tax Day is approaching fast. If you bought, sold or owned a home in 2025, here are a few housing-related tax items to keep in mind as you get your tax filing ready.

Mortgage Interest Deduction

Homeowners may be able to deduct interest paid on mortgage debt up to $750,000 (or $375,000 if married filing separately), provided you itemize your taxes and purchased your home after Dec. 14, 2017. Higher deduction limits ($1M) remain in place for mortgages that closed before Dec. 14, 2017.

State and Local Tax (SALT) Deductions

The cap on the SALT deductions for 2025 filings increased to $40,000 for taxpayers with adjusted gross income under $500,000. Previously, it was capped at $10,000, and this change benefits homeowners in areas with higher property taxes. You must itemize deductions to claim this benefit.

Mortgage Insurance Premium (PMI) Deduction

Homeowners can once again deduct mortgage insurance premiums (PMI) on their taxes. PMI is generally required when a home buyer makes a down payment of less than 20%.

Capital Gains Exclusions on Home Sales

If you sold your home last year, you may be able to exclude up to $500,000 of capital gains if married filing jointly (or $250,000 if single); however, you must have owned and used the home as your primary residence for at least two of the last five years.

Consult a Tax Professional

These are just a few of the tax considerations for homeowners and sellers. Because tax situations vary, it's always best to consult a qualified tax advisor for guidance specific to your circumstances.

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