Tax Deductions Homeowners Should Know About
Buying a home is a major financial decision. But with it comes some rather significant tax breaks. If you are a homeowner, check out some of these common tax deductions you may be eligible for:
Mortgage Interest – The interest you pay on your monthly mortgage bills could be tax deductible. Over the course of a year, this could potentially add up to a lot of money.
Property Tax – All homeowners are required to pay property taxes by law. The good news is, this bill could be a tax deduction.
Energy-Efficiency Upgrades – The government recognizes many energy-efficient upgrades as eligible tax deductions now. With the surge to better care for our planet, home improvement upgrades that are registered as “green” upgrades could end up putting money right back in your pocket.
Private Mortgage Insurance – For those owners who put down less than 20% for a down payment and therefore incurred a monthly private mortgage insurance charge, this payment could be a write off.
Fees/Points – When purchasing a home, the buyer is held responsible for fees throughout the process and to officially close the loan. Some of these fees are called points and represent 1% of the loan principal. Points are deductible from your taxes.
As always, be sure to talk to a licensed and trusted tax professional. Everyone’s situation varies and a professional can help not only answer questions but ensure you get the biggest refund you are potentially eligible for.