Homeowners pay a yearly property tax based on the value of the owners home. What most homeowners do not know is that this yearly property tax is fully tax deductible. The local property tax that is paid is a legal deduction allowed by the federal government.
If your home has been damaged by fire, storm, flooding, or any situation not related to your negligence, you can deduct the associated expenses as a casualty loss. The amount that can be deducted depends on the amount of damage. There are many rules and regulations on how to take casualty losses as a deduction. You will need to consult with your tax CPA in the proper way to take casualty losses as a deduction.
Maintaining a business from your residence is can be deducted as a home office expense. Home office deductions can be very tricky and you will really need to consult with your tax CPA so that you properly deduct your home office expense.
Home renovations, home remodeling and other home expenses that are made for medical and health related issues can be deducted. This includes any modifications for a disabled person or ill person living in the home. A few examples of the types of renovations are as follows: handicap ramps, specialty air filtration systems, air condition units, or swimming pools to help treat an illness.
The interest that you pay on your mortgage is an allowable deduction by the IRS. There is a limit of up to $1.1 million. This is the largest single tax break in the tax code available to homeowners as the mortgage interest deduction.
Refinancing can be a pain, but it does come with its advantages. If you recently refinanced, then you can deduct points you paid for the new loan. However, you cannot deduct all points at one time. You must divide them evenly throughout your loan. For example, if your loan was for 20 years and you have 40 points, you can deduct 2 points a year.
Going Green can definitely save you some “green.” Making “green” renovations makes homeowners elligible for dozens of tax deduction credits. The credits range from solar power panels to purchasing energy efficient appliances for your home. These tax deductions are not only saving you money on your taxes, but they help save the planet as well.
Not only are there deductions for owning and maintaining your home, but there are also deductions for selling your home. Advertising fees, legal fees, real estate agency fees, title insurance and any fees associatd with the selling of your home can be declared as a deduction. You can also deduct certain home improvements such as paiting, landscaping, home improvements, as long as they are being done with the intention of making your home gain value.
There are many other deductions that are available for homeowners. J.M. Trippon CPAs has extensive knowledge on all of the available tax deductions to homeowners. For a free tax evaluation call one of our income tax preparation specialists at 713-661-1040 today and let us save you money on your income tax return this year.