In 2025, tax laws have changed for home buyers and sellers. Mortgage interest and property taxes are deductible, and itemizing expenses could be beneficial. The standard deduction for single filers is $15,750, and $31,500 for joint filers. The “One Big Beautiful Bill Act” increased the state and local tax deduction to $40,000.

For those who bought a home in 2025, mortgage interest is deductible up to $750,000. Keep excellent records for future tax returns, including documents from closing and home improvements. Upgrades improving home structure and modernization are deductible, while normal repairs are not.

If you sold a home in 2025, you may have capital gains. Homeowners can exclude up to $250,000 for single filers and $500,000 for joint filers. Ensure you have lived in the home for two years in the last five. Document capital improvements to maximize exclusions and be aware that capital losses can’t be applied to taxes.

Read more at Yahoo Finance: Bought or sold a home in 2025? Here’s what to know at tax time