Whatever your politics are, there’s no arguing that the American government wants you to own a home – in fact, they’re consciously tempting you to buy one.

In order to encourage the pursuit of the American dream, the government offers homeowners several opportunities to reduce their annual tax payment. Whether you’re buying a trailer, a condo, or a mansion, you’re eligible for some enormous tax breaks.

The greatest deductible is going to be your mortgage interest. A mortgage is a loan given on the condition that your property serves as collateral. The money you gain from a mortgage could be used to buy, build, or improve your home. Regardless, up to one million dollars of the mortgage interest is deductible. That’s a HUGE possible reduction in your taxable income!

If the time comes to sell your home, you’re in for another treat known as the capital gains exclusion. As long as you’ve lived in your house for at least two of the past five years, up to $250,000 of your sale’s profit is tax exempt. If you’re married, that limit is raised to $500,000. For example, let’s say you sell your home for $300,000 although you originally bought it for $200,000. That $100,000 profit goes completely untaxed. Considering how the IRS taxes pretty much everything under the sun, this is an incredible benefit.

Many additional home-buying related expenses are deductible. You will be charged fees called points when obtaining your mortgage; these are deductible. Up to $100,000 of home equity debt is deductible. State and local property taxes are deductible, too.

Add up, or itemize, all of these possible deductions. You have two options come tax time: take the itemized deductions or simply opt for the standard deduction amount. The standard deduction amount is based on your filing status: $10,900 for a married couple and $5,450 for a single person. It’s definitely worth spending the time to check which deduction is higher. For some, the standard deduction may be greater in the end.

There’s definitely a dizzying array of possible benefits, deductions, and exceptions when it comes to taxes. In order to maximize your deductions, be sure to consult a licensed tax advisor.