Yes—many deductions and credits begin the year you purchase, even if you owned the home for only part of the year.

Certain energy-efficient improvements may qualify for federal tax credits.

Not necessarily. Many homeowners can exclude a significant portion of their profit from capital gains tax—up to $250,000 for single filers or $500,000 for married couples—if the home was their primary residence and they meet IRS ownership and use requirements. However, certain situations, such as rental use, recent purchases, or high appreciation, can affect how much tax is owed.

For 2025, the SALT (State and Local Tax) deduction cap that homeowners can claim on their federal tax return is $40,000 (or $20,000 if married filing separately).

This limit applies to the total of state and local property taxes plus income or sales taxes that you deduct.

Owning a home can make it easier to deduct charitable contributions because it often helps taxpayers itemize deductions instead of taking the standard deduction.

Here’s how it works:

When you own a home, deductions like mortgage interest and property taxes may already push your total itemized deductions closer to (or above) the standard deduction threshold. Once you itemize, charitable donations become fully deductible (subject to IRS limits), whereas renters are more likely to take the standard deduction and receive no additional tax benefit from giving.

In short, homeownership can “unlock” the tax benefit of charitable giving by making itemizing worthwhile—allowing your donations to actually reduce your taxable income.