Possible Tax Advantages:

Income Tax Exemptions - As of August 5, 1997, homeowners are allowed an exemption from federal income taxation of up to $250,000 (for a single taxpayer) or $500,000 (for married couple at the time of sale)  of profit on the sale of the principle residence.

The full exemptions are available every two years and are prorated if the qualified properties are owned for less than two years. For example, if the owner sold the house after living in it for one year, the exemption on the profit of sale would be $125,000 (50%).

Deductions - mortgage interest payments and property taxes on the first and second homes can be deducted from your gross income to reduce your taxable income. So, the government is basically subsidizing your purchase of a home. For most homebuyers, such deductions make the difference between an affordable home payment and the one that is not.

Of course, tax laws and policies change all the time, please consult with your local tax professionals regarding tax implications on homeownership.