You can deduct the interest you pay on your mortgage.

The home mortgage interest deduction is probably the best-known tax benefit for homeowners. This deduction allows you to deduct all the interest you pay toward your home mortgage.

You may be able to deduct points.

Points are essentially prepaid interest that you offer upfront at closing to improve the rate on your mortgage. The more points you pay, the better deal you get.

Depending on the year and your income level, you may be able to deduct PMI.

Private Mortgage Insurance, or PMI, protects the bank in the event you default. PMI may be required as a condition of a mortgage for first-time home buyers, especially if they can't afford a large down payment.

Real estate taxes are deductible.

Most banks or other mortgage lenders will factor the cost of your real estate taxes into your mortgage and put those amounts into an escrow account. You can't deduct the amounts paid into the escrow, but you can deduct the amounts paid out of it to cover the taxes. If you don't escrow for real estate taxes, you'll deduct what you pay out of pocket directly to the tax authority. And don't forget about those taxes you paid at settlement. If you reimburse the seller for taxes already paid for the year, you get to deduct those too.

Your other tax deductions may matter more.

To take advantage of these tax benefits, you have to itemize your deductions on your tax return.

You'll get capital gains tax relief down the road.

Resale value is something you considered when you chose your home. And different from other investments for which you're taxed on the full value of any gain, you can exclude some of the gain attributable to your home when you sell.

Under current law, you can avoid paying tax on up to $250,000 of gain ($500,000 for married filing jointly) so long as you have owned and lived in the property for two of the last five years (those years of owning and inhabiting don't have to be consecutive).

Gain over that amount is taxed at capital gains rates, which are generally more favorable than ordinary income tax rates.

So whether you are a first time home buyer looking for Taos or Angel Fire real estate, or you are a homeowner wanting to sell your Taos or Angel Fire real estate give the ladies at New Mexico Mountain Properties a call. We are dedicated to bringing you the best in real estate throughout the Enchanted Circle. Perhaps you want to buy a home, condo, earthship or land in Taos give us a call at (575)758-5852. If you don't see what you are for on our website you can access the area MLS system from this site. If you are looking to buy or sell a home,condo, land, ranch,or commercial property in Angel Fire call (575) 377-2626. To speak directly to a broker call Paula at (575) 770-3306. We are here to welcome you to our growing community. Cool Fresh Mountain Air Is Waiting Just For You!!!

Information obtained from Trulia