How Much Can I Deduct in Property Taxes? Understanding the $40,000 SALT Cap
One of the most significant SALT deduction cap 2025 changes is the increase in the limit. For the 2025 tax year, many homeowners can now deduct up to $40,000 in combined state and local taxes (SALT), a major jump from the previous $10,000 limit. This shift makes deducting property taxes for new homeowners a key strategy for reducing your taxable income.
Mortgage Interest Deduction Rules: What You Need to Know for 2025
A common question we hear is: “Is mortgage interest deductible in 2025?” The answer is yes. Under current mortgage interest deduction rules, you can generally deduct interest on the first $750,000 of mortgage debt. If you had long meetings with your bank to secure your loan, ensure you have your Form 1098 ready.
Need a refresher on loan structures? Check out our Mortgage Basics guide.
Energy Efficient Home Improvement Tax Credits & Solar Incentives
The “Earth says thank you” section of your taxes has grown. Under the energy efficient home improvement tax credit, you can claim significant offsets for:
- Solar Panels: Up to 30% credit for installations completed in 2025.
- Heat Pumps & Biomass Stoves: Credits up to $2,000 annually.
- Windows and Doors: Enhanced credits for Energy Star-rated upgrades.
Capital Gains Exclusion: The Primary Residence 2-out-of-5-Year Rule
Planning to sell in the future? Understanding the capital gains exclusion on home sale rules is vital. To qualify for the $250,000 (single) or $500,000 (married) exclusion, you must meet the primary residence 2 out of 5 year rule—meaning you lived in the home for at least two of the five years leading up to the sale.
Curious about your current equity? Find out what your Denver home is worth today.
Is there a First-Time Homebuyer Tax Credit in 2025?
Under the OBBBA, new provisions have been introduced to support the first time homebuyer tax credit. If you purchased your first home in 2025, you may be eligible for a refundable credit at the federal level to offset closing costs.
