Most
Common Tax Deductions And Credits For Homeowners
Local
Taxes
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.
Casualty
Losses
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.
Home
Office
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.
Health-Related
Improvements
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.
Mortgage
Interest
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.
Paid
Refinanced Loan Points
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.
Green Credit
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.
Selling Costs
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.
|
Related
Tax Preparation & Tax Accounting Articles:
|
|
|
|
|
|
|
|
|
|
Individual Tax Return Service
