Save thousands of dollars by making sure that you consider all the following when filing your taxes!
Mortgage payment interest deduction
You can deduct all the interest you paid on your home…one of the great reasons that some actually have a mortgage on their home; to take this deduction!
Mortgage Credit Certification Program
According to the IRS, this program "is intended to help lower-income individuals afford home ownership."
Mortgage points deduction. If you paid down points to get a lower interest rate, you get to deduct the cost of those points this year!
Tax-free IRA withdrawals
Did you know that you can take money from your IRA penalty free for a down payment? "First-time homebuyers who break into their IRAs to come up with the down payment do not have to pay the 10% penalty normally applied to pre-age 59 1/2 withdrawals," Greene-Lewis said. "This incentive also applies to current homeowners as well, since you are eligible for first-time buyer status if you have not purchased a home in two years."
Real estate tax deduction
"Taxpayers who itemize their deductions on Schedule A are also eligible to deduct real estate taxes paid on their primary and secondary residences," said Laurie Samay, a certified financial planner with Palisades Hudson Financial Group.
Keep your receipts for all home repairs! You can deduct them against rental income as well as a home equity line. “Also, when you sell your home, you can include the cost of improvements made to the property in the cost basis when determining your capital gains or losses on the sale," Christakos said.
Home office deduction
"If you work from home, you can take a deduction for the room or space used as your office," said Ryan Saltz, a licensed tax professional for Tax Defense Network in Jacksonville, Fla. "This includes working from your garage, if you have your own repair business."
Home energy tax credits
Want to get the green reward? Put extra green into your pocket by taking advantage of the Residential Energy Efficiency Property Credit "You could save up to 30% of the total cost of installing certain renewable energy sources in your home," said Jayson Mullin, founder of Top Tax Defenders.
Private mortgage insurance deductions. Hopefully congress will renew this as its not part of the IRS tax code. For those who put less than 20% down payment, you pay this tax until you reach 20% downpayment. Deduct it if you can!
We hope you’ll take these tips to your tax return and get lots of money back! And, if you’re currently renting and would like to receive this breaks in 2018, call us today - 508.808.1149
Check out this great article to learn more details about these deductions.