Owning a home provides multiple tax benefits, that when applied properly can be a big savings come tax time. As always, please consult a CPA or the IRS for specific tax advice, but below are some of the many homeowner tax deductions.
Mortgage Interest
The interest that you pay on your mortgage is tax deductible, up to $1 million in mortgage debt on a first or second home for couple files jointly and $500,000 for someone who files individually.
Mortgage Points
If you obtained a home loan in the past year and paid any origination points, the points will be eligible for deduction as well. One point is equal to 1% of your loan amount at the time you took out the loan. You can fully deduct points associated with a home purchase mortgage. And on a home refinance mortgage points are also deductible, but over the life of the loan.
Property Taxes
Your home’s property taxes paid in a calendar year are fully deductible as well, just as the mortgage interest is.
Home Office
If a portion of your home is used exclusively for business purposes, you may be able to deduct home costs related to that portion. However, this is a deduction that can get tricky and is best to consult a CPA on.
Moving Costs
If you move in the past year because you obtained a new job and your new job is at least 50 miles farther from your old home than your old job was, then you may be able to deduct moving costs. This deduction can include travel costs and fees for storing the items you are moving.
These are just some of the many tax benefits of home ownership, but as always please consult with a licensed CPA or the IRS for specific tax advice.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC - NMLS#158804- Equal Housing Lender – AZBK#0909514
Vasilios Bill Kamboukos Jr – NMLS#160440
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