Owning a home doesn’t come cheap, but it’s always great to know that some of your expenses are tax deductible. If you want to know how you can minimize the cost of owning a home by maximizing homeownership write-offs, you’ve come to the right place. Please note that the information presented here is based on the 2015 tax year.
1 . Mortgage Interest
When it comes to mortgage interest, there is always room for you to deduct all the mortgage interest payments you make on your home. This applies not only to your home equity line of credit (i.e. on a loan worth up to $100,000) but also to a second mortgage. If you own another home, such as a mobile home or vacation cottage, you can deduct the mortgage interest for it as well, provided you stay there for at least 14 days a year or 10% of the duration it is rented out.
2. Mortgage Points & Insurance
Apart from mortgage interest, you can also deduct the mortgage points for your home in the same year you pay them. These are the points you pay on your mortgage. Additionally, you can also deduct the points you pay for a home equity loan. It is worth noting that points paid to refinance a home mortgage should be amortized based on the length of the loan. You can also deduct premiums you pay for private mortgage insurance on your loan, provided you earned less than $109,000 in 2015. READ MORE....
Comments(0)