The Military Home Programs' Blog

Have you found yourself sitting on the fence about the best timing for a home purchase? If you have, here is something to consider. Buying a home early in the year could help cut your income taxes. When you consider that mortgage interest, property taxes and points paid for financing a home mortgage all qualify for itemized tax deductions, it makes sense to start them earlier in the year. This is because your itemized deductions are only worthwhile when they exceed the standard deduction ($10,300 for Married Filing Jointly in 2006). Buying later in the year may mean you won’t pay enough in interest and taxes to exceed the standard deduction, thereby missing your opportunity to reduce taxes for that year.