IRS Eligible Homeowner Deductions a Huge Homeowner Savings
One of the advantages of owning a home is the tax deductions that come with homeownership. Many potential homeowners don’t realize the true cost of their home. It’s not just appreciation but the tax savings that can lower the cost of owning your home. Homeowners pay an annual real estate tax their home based on its value and this tax is fully deductible. The federal government allows you to deduct the amount you paid in local property taxes
Mortgage Interest: The IRS allows you can deduct all of the interest you pay on your mortgage for both your first and second home, up to $1.1 million. In fact, the mortgage interest deduction is the largest single tax break in the tax code. For more information click on the following link to the IRS Publication on Eligible Home owner tax deductions for a valuable guide to taking advantages of these homeowner benefits.
Cost of Selling Your Home: In addition to deductions and credits for owning a home, there are also benefits if you decide to sell your home. Legal fees, advertising expenses, real estate agent’s commission, title insurance, and any other expenses associated with selling your home are deductible. The IRS will even let you include things like landscaping and painting in your selling costs if you complete them with the intention of making the home more valuable.
Home Office: If you work from home then you may be able to deduct your home office expenses. However, this deduction is a little tricky, and the office needs to have it’s own room in your house.
Casualty Losses: If a fire or storm damaged or destroyed your home, you may be able to deduct the associated expenses as casualty losses. However, there are a lot of rules and restrictions, and the actual amount you can deduct will vary upon your location and the amount of damage.
Health-Related Improvements: Home renovations or other home expenses made for medical reasons can be deducted. This includes any expenses made specifically for an ill or disabled person living in the home. Some common examples of this deduction include handicap ramps, special air filters or air conditioners, and swimming pools to help treat illnesses.
These are only some of the tax deductions a homeowner is eligible for there are other such as the Green tax deduction and of course refinancing loan points. When you consider buying vs. renting these deductions can actually lower your costs and put more money in your pocket.
This information has been brought to you as a public service by the Real Estate Team of Hugh Lilly and Maria Estrada at PMZ Real estate. We can be reached at 209-479-9222 or e-mail us at hometeam@homes-in-stockton-forsale.com visit our web site www.homes-in-stockton-forsale.com .
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