Make Your Home Work For You on Tax Time
When tax time comes around again, don’t forget to tap into the potential savings that you are entitled to as a homeowner! A professional mortgage broker can help you to get the biggest return out of your home when it comes time to fill out your income taxes.
- First and foremost, remember to deduct the interest on your mortgage payments on primary and secondary homes. You can make this deduction so long as your mortgage is less than a million dollars and you itemize your return.
- The property taxes you’ve paid are an itemized deduction on your Federal taxes for as long as you own your home.
- Did you make any improvements to raise the value of your home? Many of these can be written off. However, any renovations to restore something to its original state probably cannot be written off.
- Did you install any energy-efficient features in your home? These can be used to offset your bill. This deduction can be for up to ten percent of the amount you spent on the energy-efficient upgrades, up to $500.
- Do you work from home? Don’t forget to calculate the deduction for your home office. As of this year, the write-off is easier before as homeowners have the option of taking a flat rate of $5 per square foot of their home office.
