What do you know about how homownership affects your taxes?
Tax season is well underway, with early birds already receiving their refunds. As a homeowner, or a prospective homeowner, you should know how buying a house can affect filing your taxes. There are a great many things that you can benefit from if you just know where to look. Let’s get started.
There are a lot of deductibles when you own a home.
Any interest paid on a home mortgage is deductible for those of you who itemize you’re your tax deductions. Though this deduction is limited to debts up to $1 million invested either to purchase or fix up the home, any money that you can save on your taxes is worth the effort Not only that, but you can also deduct interest on up to $100,000 of debt acquired from home equity, no matter what you may have spent it on. Do you pay property taxes? Well, you can reduce your taxable income with that as well. Keep track of these important deductions the next time you file your taxes.
What other deductibles are available to you as a homeowner?
If you’re one of the many people who works from a home office, then you may like this next deduction. You can use the home office deduction to write off a small amount of home maintenance costs as long as some of the work was done on or in your office.
If you sell a house this year, you won’t lose out on benefits for next year.
If you have maintained your home as your principle residence for at least the last two out of five years that you have owned it. You can deduct up to $250,000 of capitol gains that you make on the home’s sale as long as you also haven’t gotten this deduction in the last two years.
Contact Caliver Beach when your finances are ready to move on a new home!
Whether you’re looking for a house to flip or a home to love, finding the money for this investment can be difficult. We at Caliver Beach are ready to help you find the right loan for your situation. Our team of highly qualified experts have hundreds of options ready for you to invest in the home of your dreams. Contact us today! You can also follow us on Facebook, Twitter, Google+, Pinterest, and Youtube!