April 7, 2025

This paid piece is sponsored by Amy Stockberger Real Estate.

By Amy Stockberger 

If you’ve been watching the headlines, you might have seen that recent tariff announcements nudged mortgage rates down to the lowest level of the year so far. That means more buying power, better affordability and if you’re thinking about selling — possibly more eyes on your home.

But that’s not all — Fannie Mae also updated its 2025 forecast.

It now projects that mortgage rates might fall even lower — to 6.3 percent by the end of this year and possibly down to 6.2 percent by the end of 2026.

That’s not a huge plunge, but even a small shift can mean thousands in savings for buyers — and for sellers, it could mean more competition and rising prices.

Real estate is the gift that keeps on giving, and this is one of those moments where you can double dip: lower rates and bigger tax perks if you’re a homeowner.

Most people think of homeownership as just one giant expense: mortgage payments, maintenance, insurance, taxes, the list goes on. But what a lot of people miss is how your home can actually pay you back — especially during tax season. If you own a home, you could be sitting on deductions and credits that can reduce your taxable income, boost your refund or soften what you owe. Let’s unpack it.

Tax advantages of owning a home

Here are a few ways homeowners in the Sioux Falls area can win at tax time:

• Mortgage interest deduction — You can deduct interest paid on mortgages up to $750,000, or $375,000 if married and filing separately. If you bought recently, this one can be a biggie — early mortgage payments are mostly interest.
• Property tax deduction — You can deduct up to $10,000 in combined state and local property taxes, or $5,000 if married and filing separately. Just be sure you’re itemizing to take full advantage.
• Home office deduction — If you’re self-employed and use part of your home exclusively for work, you can deduct a portion of your home expenses — like utilities, mortgage interest and internet. And if your space needs a little TLC before it qualifies, we’ve got you covered. Through our Lifetime Home Support™ model, we have a Home Support Team Partners lineup to help get it done with preferential pricing for our VIP Club members.
•  Energy-efficient upgrade credits — Did you add insulation, new windows or maybe solar panels? You could qualify for tax credits up to 30 percent of the project cost. Plus, if you’re looking to make those upgrades now, we’ve got a Home Support Team Partners lineup to help get it done with preferential pricing for our VIP Club members.

Renting vs. owning at tax time

Let’s talk real numbers. Renting might feel simpler, but it often leaves money on the table:

Renters

• Pay rent with no long-term return.
• Can’t deduct property taxes or interest.
• Any upgrades help the landlord, not you.
• No equity building, no tax perks.

Homeowners

• Can deduct mortgage interest.
• Property taxes, up to $10,000, are deductible.
• Home office deductions if self-employed.
• Energy tax credits available.

Your homeowner tax checklist

Before you hit “file,” grab these documents:

• Form 1098 – Shows mortgage interest paid through your lender.
• Property tax statements – Usually from your escrow provider or county.
• Receipts for home improvements – Especially energy-efficient ones.
• Home office details – Square footage, utility costs and documentation of use.
• Closing paperwork – If you bought or sold in the past year.
• Energy credit records – Especially for solar or multiyear projects.

Not sure where to start or how to organize it all? Our Lifetime Home Support™ clients also have access to our trusted local tax professionals — we connect you with people who understand the ins and outs of real estate-related write-offs. Just another reason why our Home Support Team Partners lineup, which helps get it done with preferential pricing for our VIP Club members, continues to be a total game-changer.

Don’t just own a home — make it work for you

Owning a home isn’t just about the now — it’s a long game of equity building, smart decisions and, yes, some sweet tax-time wins. And when you’re a part of our Lifetime Home Support™ system, you’re never left to figure it out alone.

We’re here to serve you before, during and forever after your home purchase or sale. Whether it’s upgrading your office, finding a trustworthy tax expert or tapping into thousands of dollars in savings through our VIP Club, we’re just a call or click away.

Thinking about buying, selling or just making smarter decisions around your home this year? Let’s talk — we’ve got your back for life.

Check out my guide to selling a home this spring.

Looking to buy or sell a home? Visit Amy Stockberger Real Estate here.

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Click here to see if your company is a fit for our Home Support Team.

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