Filing your taxes comes once a year, and it’s always important to keep yourself informed about the changing tax landscape for homeowners. Homeowners can claim a number of tax deductions, which can lower their overall tax bills. Among the write-offs are deductions for mortgage interest, mortgage points and real-estate tax payment. If you bought your home within the last year, you may even be able to write off expenses you haven’t yet paid pay. Being informed is the best thing you can do for yourself to make sure you aren’t paying money that you don’t ultimately have to. Here are four commonly not well-known tax write-offs that you might qualify for.
If you also use your home as an office, you may qualify for a home-office deduction. The write-off includes depreciation, utilities and insurance for the office portion of your home. There are a number of factors that go into determining whether or not you qualify, like whether or not you meet clients at your home for business, or if it is your primary place of business, so it’s important to seek more information before writing anything off.
If your home was destroyed or damaged due to an act of God, you may be able to qualify for further financial help by deducting a casualty loss on your return. This can be subject to the amount of damage and help you’re already receiving, but if you’re able to write it off, you should.
Energy Efficiency Upgrades/Repairs Deduction
If you have recently updated your home with energy efficient upgrades like new doors, new roofs and a number of other energy-efficient items, you may be able to qualify for another deduction.
Real Estate Taxes When Buying A New Home
If in the past year you have purchased a new home, dig deeper to find out if your seller has prepaid property taxes for a duration of when you owned the home at the beginning. If they did, you are able to include that in your property tax deduction.
Do your research to become more informed about the deductions and tax write-offs available to you as a homeowner, it has the potential to save you money in the long run. For more information on your specific tax situation, contact a CPA or tax professional to get the details of what you can write off on your taxes.
*Information in this article is deemed to be accurate but not guaranteed.