It’s about that time of year when you’re getting together all your financial info in order to do your due diligence as an American citizen, aka, paying your taxes!
As a home owner, there are more than a few ways your home may provide some tax benefits.
- Mortgage Interest: You know that pesky interest rate that your lender locked you in at? Well, that is tax deductible. Keep in mind if you are married and filing jointly or separately – if filing separate you both can’t take all the credit! Talk to your tax professional.
- PMI Interest: Is your home loan for more than 80% of it’s value? Did you purchase it after 2006? If so, you may be able to deduct this or part of this depending on your current income. After you hit the take home pay of $50k, it works a little differently. Talk to you tax professional.
- Property Taxes: You may be able to deduct your property taxes in the year you paid them. For example, if you paid them in that current tax year, go for it! However, if you paid them a little later, like in January/February, you’ll have to wait until that next tax year. Talk to your tax professional.
- Home Office: Do you work from home, and a room in your home is dedicated to your office? If so then you may be able to deduct a portion of your insurance, cost of repairs, utilities…etc. Talk to your tax professional.
There are many more instances where you could save money, equity loan interest? Home improvement loan interest? Selling costs? Moving costs? Please check with your tax professional for answers to these questions, or better yet, read it for yourself directly from the IRS website.