Tax season brings about many questions and concerns. Take a look at these tips to be sure you’re getting the most out of your taxes.
- You can deduct your home mortgage interest/points on your tax return if you (1) itemize deductions, and (2) the mortgage is a secured debt on your main home or second home. The loan may be a mortgage, second mortgage, line of credit or home equity loan.
- Private Mortgage Insurance (PMI) is deductible. Homeowners who make a down payment of less than 20% are usually paying some sort of Private Mortgage Insurance. If your mortgage was originated after Jan 1, 2007, and you have PMI, it can be a tax deduction.
- Real estate taxes are deductible. This includes state and local taxes based on the value of your property.
- Deductions are available for energy efficient improvements. These improvements include solar panels, certain hot water heaters, and energy-efficient windows, doors, roofs ect.
- Deductions can be made on home office improvements. This is only available if the office space is where the majority of your work is done. It is also only available if the space is used solely as an office.
- There are also deductions for medically necessary changes to your home. For example, handicap-accessible bathtubs or entry ramps.
- If you sold a home in the past year, you can claim selling costs. These costs include title insurance, advertising, and real estate broker fees.