Most people who rent take the standard deduction, while most people who own their own home get to itemize their deductions on their tax return— and usually wind up paying less in income taxes as a result! For one thing, if you own a house, your home deductions will be large enough that you will be able to take other deductions as well (ie. charity, non-reimbursed work-related expenses, medical bills, and more). For renters, those deductions are typically money left on the table.
Ok, so just what deductions can a homeowner take?
#1 Mortgage interest. In the early years of a mortgage, most of the money goes to pay interest, and that is usually all deductible.
#2 Points. When you take out a mortgage, you sometimes pay points, and these are usually deductible.
#3 Property taxes.
#4 Home office. If you work from home a certain percentage of your housing costs may be deductible.
#5 Home improvements for medical care. These must usually be doctor prescribed.
#6 Moving expenses. Not all moving expenses are deductible, so like everything else on this list- check with your tax professional to develop the best money saving strategy.