Tax Tips and Write Offs For Homeowners - Tax season can be an exciting yet stressful time of year. Who doesn't want to get the best return or tax break as possible, right? Well here are a few tax tips and write offs to check into when doing your taxes this year...
Tax breaks: The mortgage payment you make each month is the biggest write-off for new homeowners. Most of that check goes toward interest, and all that interest is deductible. Interest tax breaks don't end with your home's first mortgage. Did you refinance, or get a home equity loan or line of credit? That interest is also deductible. Those real estate taxes you’ll need to pay are deductible, too. If you paid points to get a better rate on any of your home loans, those offer a tax break as well. All of these deductions mean more money to offset your mortgage.
Tax professionals: It may seem counterintuitive to spend money on hiring a professional to do your taxes after spending so much money purchasing a home in the first place. However, with all of the changes you will encounter with handling your taxes and the differences in tax reductions, it may be worth it to hire someone in the know for your first year of homeownership. Later, you can use their work as a template to do your taxes yourself, but you’ll save yourself a lot of time and frustration by turning to their expertise.
A few more Tax Write Offs....
Energy Efficient Upgrades - If you have installed or repaired energy efficient windows, appliances, etc., you could be eligible for a tax write-off.
Home-Office Deduction - If you work from home, you may be eligible for the home-office deduction.
Moving Expenses - If you have taken a new job, and had to move for the cause, you may be eligible for a write-off.
Rental Income - Did you rent your home for fourteen days or fewer during any given year, the rental income is tax-free, regardless of how much your annual salary is.