For those interested in buying a home in Hawaii, there are many tax deductions available to them, which makes buying a home easier in the end. However, most people are not aware of just what types of tax deductions that they have the opportunity to receive. In addition, first time home buyers have a huge deduction that they can take part of.

There are three big tax deductions available to homeowners.

These are deductions related to mortgage interest; any points connected with the mortgage loan and property taxes. In most cases, people receive the bulk of their return from the interest that is paid on the loan, especially during the first few years of the loan because your mostly pay interest during this time. You will need to make sure that you keep all of your statements regarding your mortgage intact for your accountant to go over so that you can ensure that you get all of the allowed deductions.

For first time buyers, they have the opportunity to take part in the first time homebuyer tax credit.

This tax credit is only good for those people who bought their home from January 1, 2009 to April 30, 2010. If your paper work went through and was approved on the 30th of April, then you still have the chance to receive the credit. There are limits on what you can make per household or single person, which you will need to check with your accountant to make sure that you qualify.

However, it is well worth your time to find out if you qualify for the tax credit because it is an $8,000 credit, which you receive back in your income tax returns, which can definitely help with tight situations.

There are a number of forms that you will have to fill out in order to make sure that you get your maximum deductions. Many people do their taxes themselves, however, with this situation, unless you are an accountant yourself or have some financial expertise, then you should seek a professional accountant because they know the most up-to-date information in order to get the best deduction possible.

A few things to keep in mind when preparing to file your taxes, is that it really depends on your closing date of your home to benefit from all of the tax deductions. However, remember next year you should be able to get the full benefits of your home ownership in regard to taxes.