5 Great Tax Deductions for Home Owners

Filed under: Mortage Industry News

With tax season in full swing and the deadline to file only a couple weeks away, many Americans will be putting the finishing touches on their returns in the next few days.

If you are a home owner, there are some tax benefits that you don’t want to forget when you file your returns.

Mortgage Interest Paid

Single family house on pile of moneyYou should have received notification from your mortgage company by now that indicates how much mortgage interest you paid in 2015.  This is often your biggest single tax deduction and can make a significant difference in your tax liability.

Property Taxes

This can be another significant deduction, depending on where you live and the value of your property.  If your taxes are paid through your escrow account, it is easy to forget this deduction.  Make sure you include it!

Mortgage Points

Did you buy or refinance your home in 2015?  If so, take a look at your closing statement.  If you paid any “points” towards the loan, these “points” are considered interest and you can deduct them.  This is another deduction that is easy to miss to check that closing statement carefully and talk with your CPA if you have questions.

Residential Energy Credit

Did you add solar panels to your home in 2015?  Did you make any improvements that make your home more energy efficient?  If so, this tax credit may apply.   Make sure to ask your CPA about it.

Home Office

Do you work from home?  Is a portion of your home dedicated for your business?  If so, this deduction may also apply for you.  Once again, consult with your CPA and make sure he/she knows that you have a home-based business.  Even if this business is part-time, you may have the ability to claim a home office.

If you have further questions, feel free to give me a call and make sure you talk with a tax professional so that you can maximize all of your housing deductions and document them correctly on your returns.

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