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Tax Day is here, and while most people are stressing over what they owe, Portland homeowners might actually have a reason to breathe a little easier. Why? Because owning a home in the Portland real estate market doesn’t just build long-term wealth, it can also come with some pretty sweet tax benefits.
As a local Portland real estate agent, and homeowner, I’ve seen firsthand how these tax perks can make a big difference. Uncle Sam may have taken a bite out of your wallet, but your house might just be your best tax shelter (pun fully intended). Here’s how your home might be giving you more than just a roof over your head:
🏡 1. Mortgage Interest Deduction
If you’ve got a mortgage, you’re probably paying a decent amount in interest each year, especially with current rates. The good news? That interest is often deductible. That means potential savings come tax time, and fewer tears in your IPA down at Breakside Brewery.
💸 2. Property Tax Deduction
Yes, Multnomah, Washington, and Clackamas County property taxes can be a lot. But up to $10,000 in state and local taxes (including property tax) can be deducted if you itemize. That’s one way to make peace with your annual bill from the county.
💵 3. Capital Gains Exclusion
Portland’s home values have grown a ton over the years. If you’ve owned your primary residence for at least two of the last five years, you could exclude up to $250,000 in profit (or $500,000 if married) when you sell. Tax-free equity? Yes, please.
🖥️ 4. Home Office Deductions
Got a home office in your SE Portland bungalow or your Beaverton ranch? If you’re self-employed, you may be able to deduct a portion of your housing expenses, like utilities and internet, for the space you use to run your business. You can also write off your home office square footage if it’s your primary place you conduct business. You can read more about that on the IRS website HERE. Just don’t try to write off your Peloton room and call it “client engagement.”
🌿 5. Energy Efficiency Credits
Upgraded to energy-efficient windows or installed solar panels in your Portland home? You could qualify for tax credits that directly reduce your tax bill. Better for the planet, better for your wallet. Side note, sometimes you can get an energy-efficient discount at the time of purchase. Something to consider when making some upgrades to your home.
🏠 Thinking About Buying in Portland?
Tax benefits are just one of the many perks of owning a home in the Portland, OR real estate market. If you’re renting and wondering what homeownership could do for you financially, now’s the time to explore your options, before next Tax Day rolls around.
Visit that1realtorguy.com to explore current homes for sale in the Portland area, learn more about buyer resources, or just reach out and say “help.” I’ve got local lender partners, trusted CPAs, and a whole lot of insight into how owning real estate can help you build wealth and reduce that tax-season pain.
