Mortgage interest: The mortgage loan interest on your home is 100% tax deductible.

Private Mortgage Insurance (PMI): If your lender requires you to have private mortgage insurance, the PMI premiums are also deductible for mortgages obtained between 2007 and 2010.

Property taxes: All the property taxes you pay are fully deductible from your annual income.

Home office: If an area of your home is utilized specifically for a business, then you can deduct a portion of your expenses, such as depreciation, repair, and insurance costs.

Capital gains: Unlike other investment instruments, selling your primary residence at a profit shields you from capital gains tax. For gains up to $500,000 on your primary residence of the last two years, you are excluded from capital gains tax.

Home improvements: If you obtain a home equity loan or home equity line of credit (HELOC) to finance(refi) home improvements, you can fully deduct the interest on that loan. Keep in mind that this deduction only applies for improvements that are a "capital improvement," not just repairs.

The benefits of buying a home significantly outweigh renting, not the least of which is building equity in your name. br>