Home Purchase & Sale: Tax Considerations (2025)

How buying or selling a home affects deductions, exclusions, and tax planning for Head of Household filers.

Mortgage Interest & Property Taxes

Mortgage interest is deductible if you itemize (subject to limits). Property taxes fall under SALT rules (subject to $10,000 cap federally).

Home Sale Exclusion

If you meet ownership and use tests, you may exclude up to $250,000 of gain ($500,000 MFJ) from the sale of a principal residence; HOH filers typically use the $250,000 exclusion.

First-Time Homebuyer & Credits

Check for any available state or federal first-time buyer programs or credits in 2025; many incentives are state-specific.