5 Overlooked Tax Deductions for Retirees That Could Save Them Money

4. Home Ownership and Sales

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In terms of home ownership, individuals may deduct the interest on their mortgage and any points incurred and paid when acquiring a mortgage. In addition, they may claim up to $10,000 in real estate taxes paid. While the one-time capital gains exemption tax no longer applies, seniors who are looking to downsize and sell their homes can also receive up to $250,000 (or $500,000 for married couples filing jointly) capital gains tax exemption for a home sale. The requirement is that they must have owned and lived in the home for at least two years before they sell it.