About this time every year we are reminded that taxes are coming due. We recently received most of our W2’s, 1099’s, etc…now it is time to either send it all to the accountant or do it ourselves. Of course, the CPA’s are typically well versed in deductions and most of the software to do it ourselves is programmed to find deductions. However, just as a reminder lets take a look at some of the important homeowner tax deductions not to miss.
Mortgage Interest – This is almost a can’t miss for most homeowners. It may likely be your biggest deduction when it comes to your home. You may be able to deduct all the interest if you are married and filing jointly if you have a mortgage up to $1 million!
Points – If you purchased a home you can deduct the points, if you paid any, in acquiring the mortgage. If you refinanced, you can deduct them as well, only not all at once but rather over the life of the loan.
Property Taxes – If you paid property taxes then that amount can be fully deductible. Most people may have taxes paid out from the mortgage company which collects towards paying each month. Make sure the taxes were fully paid from that account before deducting.
Moving Costs – If you moved due to a new job then as long as you meet some criteria such as the new job being at least 50 miles further away from the old home than the old job was, then many of the costs in the move may be deducted.
Selling Costs – If you sold your home then you may have deductions. If you had a taxable gain, then many of the selling costs, including broker fees, may be deducted.
There may be many homeowner tax deductions not mentioned here. Many of these points can be found at the IRS website where you can search the publications for further details. Remember that owning a home has many benefits and some of those are the tax benefits! If you would like help with your next move, please get in touch and I would be happy to help. You can begin that search by clicking the button below.
The following article provides general information and is not to be construed as specific tax advice. You should seek tax advice from a qualified tax professional as this information may not pertain to your specific situation.