San Diego Homeowner Tax Deductions and Credits in 2023 | 2024

San Diego Homeowner Tax Deductions and Credits in 2021

Paying taxes is no fun, but it’s something that all of us have to do.

When you are talking about homeowner taxes, there is good news though.

NEW POST: San Diego’s Best 5 Private Country Clubs in 2023 | 2024

There are numerous deductions and credits to take advantage of, which should be able to save you a bit of money each year.

Here’s a look at some of the ones that aren’t too hard to qualify for.

Here's a quick rundown of our list:

Mortgage Interest

One deduction that is fairly easy to claim is for mortgage interest.

It allows for you to take off a portion of the amount of interest you pay for your mortgage each year.

READ: 7 Reasons to Buy a Home in San Diego in 2023 | 2024

This generally applies to your first home, as well as your second, and covers a certain amount, which is capped at $1,000,000.

This means as long as your loan wasn’t for over that amount of money, you should be able to get this deduction.

It is also important to note that this doesn’t apply to reverse mortgages.

TOP POST: San Diego Housing Bubble? 5 Reasons Why It Won't Crash in 2023 | 2024

Reverse mortgages are considered to be loan advances so they aren’t taxable, meaning you are not allowed to deduct the interest like regular mortgages.

You will save by not having to pay tax on them, but there’s no deduction or credit to look out for.

Property Taxes

Another deduction to look out for is property taxes.

As a homeowner in San Diego County, you are allowed to deduct your property taxes each year that you own your home.

EXPOSED: The 'Real' San Diego Cost of Living Guide in 2023 | 2024

Remember that this only applies to what was paid to your local government though, and not any extra fees that were added.

Additionally, when you first purchase a home, you can deduct any property taxes that were given back to the seller, or were paid in advance.

Get Pre-Approved for a San Diego home loan in 60 seconds or less – no social security number needed. Get Started ›

Energy Efficiency Upgrades

If you take the time to upgrade your home with new energy efficient windows, air conditioners, insulation, and other items, you can get yourself a tax credit.

In some cases, this also applies to appliances that have Energy-Star ratings.

READ: San Diego vs Los Angeles: Which SoCal City is Best in 2023 | 2024?

You are allowed to get a credit on 10 percent of the purchase of these materials, up to $500.

This is a good reason to consider investing in these types of products, besides just the simple fact that they can save you money in energy costs as well.

Adding a Home Office

If you intend to work from home quite often or exclusively, you may qualify for a home office deduction.

The general terms are $5 per square foot, for 300 square feet and under.

READ: 5 (Hot) Up and Coming San Diego Neighborhoods in 2023 | 2024

Keep in mind that there are a lot of other rules you must follow when you have a home office in your house, so make sure you read up on the tax laws regarding them.

Furthermore, your home office will be subject to capital gains tax when you sell your property, so if you think that you’ll sell your house for a profit, you may want to rethink adding a home office.

Home Improvements

If you have to take out a loan to fix up your house, this is something that you may be able to deduct.

You will have to use the money to either make your home’s value increase or to ensure your home’s longevity.

This is also called making capital improvements.

Own a home in San Diego and you want to get a personalized home valuation for it to see how much you can walk away in profit in this exciting market? See Now ›

Construction Loans

If you are trying to build a home, you might have taken out a loan to get it built.

In some cases, you’re able to deduct the interest on what is known as a construction loan.

READ: 9 Best Places for Families to Live in San Diego in 2023 | 2024

This is only valid for the first 24 months that you have a loan and has to be for the home you intend to live in all the time or a vacation home.

There are also other expenses and deductions that may go along with this one as well, such as moving expenses.

Get Pre-Approved in 60 Seconds... (No Social Security Number Needed)

By proceeding, you consent to receive calls and texts at the number you provided, including marketing by auto-dialer, pre-recorded voicemail, and email, from this site's operators about real estate related matters, but not as a condition of purchase. You also agree to our Terms of Service, and to our Privacy Policy regarding the information relating to you. Message and data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Private Mortgage Insurance

In some cases, some people qualify for private mortgage insurance deductions.

This type of insurance occurs when someone bought their home with a low down payment, so there is less risk for the lender.

TOP POST: Zillow San Diego: 5 Lies, Fraudulent and Deceitful Tactics Used in 2023 | 2024

At the same time, it may help you get a tax deduction, if your income falls below a certain amount.

Natural Disaster Victim

If your home has been substantially affected by a natural disaster and your county was officially declared as a disaster area, you should be able to get a deduction for that.

VISIT: 7 Best Places to Live in San Diego for Millennials in 2023 | 2024

This essentially applies to the difference between the amount covered by your insurance and the amount of the items you lost, as long as it was a loss. 

Find out what the latest and greatest San Diego home loans are right now. Detailed video and post reveals all. See it Now ›

Renewable Energy

If you decide to fit your house with renewable energy sources, such as solar panels, this may allow you to qualify for a credit on your taxes.

VISIT: 5 Best Places to Live in San Diego for Military in 2023 | 2024

It is called the Renewable Energy Efficiency Property Credit and can cover up to 30 percent of the costs involved. 

First Home Purchase

If you need money to purchase a home for the first time, you are able to take a certain amount from your IRA to buy it without taking any penalties.

This helps you out when it comes to saving.

At the same time, this also applies to refinancing your home, where you’re able to get a deduction when you refinance your mortgage.

JUST UPDATED: 5 Reasons to Move to San Diego in 2023 | 2024

You will need to understand how financing works to take advantage of this one however, so it is a good idea to read all the paperwork that came with your mortgage.

You should also know the terms and conditions on your mortgage, since they can change.

Ground Rent

In some cases, you may not own the land your home is on, but you do own your home.

If this is the case, you’re likely paying ground rent to the land owner, which can be deducted on your taxes.

VISIT: San Diego’s 4 Safest (and Least Crime Ridden) Places to Live in 2023 | 2024

The lease for the land must be for more than 15 years and you must have been paying it at least annually to qualify.

Do you own a home in San Diego and want a fast, free, and automated home valuation in 30 seconds or less? Get One Now ›

The Bottom Line

These are some of the most common deductions and credits that you can take advantage of in San Diego.

Each of them have special stipulations and rules to follow, so it is a good idea to talk to your real estate agent, banker, accountant, or anyone else you trust with certain tax information for more help.

VISIT: San Diego’s 9 Best Beach Towns to Buy a Home in 2023 | 2024

They will be able to explain how to qualify for these programs.

Moreover, you will have to have all your deductions itemized correctly when you fill out your taxes each year, so this is something else you’ll have to learn how to do if you haven’t done it before.

This also involves having records that are easy to follow and always handy, in case you get audited or the government needs more information regarding your taxes.

What do you think?

I would love to help assist you with your home purchase, home sale, or home loan - please feel free to give me a call, text, or use the form below. 

Your Homeowner Tax Deduction Insider, 


Get Scott's Personal Help Below...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Where Do You Want To Go Next?

By clicking “Send” I/We agree by electronic signature as stated below: 1) To be contacted by telephone even if the telephone number appears on a State/National Do Not Call registry or any company’s Do Not Contact lists. 2) To this website’s Privacy Policy and Terms of Use.

See Our Top Blog Posts Below...

See San Diego's Newest Listings Below...

2229 Properties
Page 1 of 62

Post a Comment