What Tax Benefits Can I Expect When Buying a Newport Beach Home

If you are on the fence about buying a Newport Beach home, consider that the tax benefits of Newport Beach home ownership can be attractive.

What are the tax benefits of buying a Newport Beach home?

  • Mortgage interest reduction. A Newport Beach homeowner can deduct the interest on a mortgage up to $1 million on a principal residence and/or second home. Depending on your income bracket this could reduce the cost of your payments by a third or more.
  • Property taxes. Local and state property taxes paid can be deducted on your federal income tax return.
  • Cost of home purchase. There are various costs involved when you buy a Los Angeles home: closing costs, loan origination fees, prorated interest on a new loan, prorated property taxes paid on closing. All these are deductible expenses.
  • Home -sale exclusion This applies to Newport Beach homeowners who have lived in their home for any two years of a five-year period prior to the sale. You can deduct $250,000 as a single person, or $500,000 as a married couple filing jointly, from the overall profit on the sale, thereby avoiding taxes on that portion of the profit.
  • Rental income. Newport Beach homeowners may rent their homes for up to 14 days a year and pay no tax on that income.

These are some great reasons to consider when looking at the benefits of home ownership.

About The Author

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Sharon Paxson is a full-time REALTOR® with EQTY | Forbes Global Properties and has been specializing in residential real estate throughout the Newport Beach area since 2005 assisting Buyer’s, Seller’s, Landlords, and Tenants with their real estate needs.

If you are thinking about buying, selling or renting your home, condo or other Real Estate in the following areas including Newport Beach, Newport Coast, Corona del Mar, Huntington Beach there are thousands of Realtors to choose from. However, it doesn't cost you any more to work with a top Newport Beach CA Realtor. We welcome the opportunity to show you how we get outstanding real estate results with specific and targeted marketing. If you are looking for a top real estate agent who will make a difference you have come to the right place. Use this real estate website to learn about communities and homes for sale.


  • Newport Beach Homes for Sale/Sharon Paxson®
  • Newport Beach area buyers, sellers, renters
  • 1100 Newport Center Drive
    Newport Beach, CA 92660
  • 949-280-0681 | DRE 01501912


DISCLAIMER: All information, photographs & content contained on this site is the property of Sharon Paxson. You must obtain written permission from Sharon Paxson if you would like to use any of this content contained herein. Opinions expressed are those of Sharon Paxson and may not necessarily be opinions of past and present brokers. Articles may be time and date sensitive. All statistical information utilized to create market reports has been obtained from the CRMLS. Information Deemed Reliable but not Guaranteed.

Copyright © 2023 Newport Beach Real Estate