Tax Tips

Mortgage interest The biggest — and most obvious — tax break associated with owning a home is the ability to deduct the interest you pay on your mortgage.

Home refinancing If you refinanced, you may be able to write-off the points paid for the new loan. But, you'll have to deduct them proportionately over the loan's life.

Home-buyer loan points The points you pay when closing on a home are deductible on your income tax statement for that year.

Real estate and property taxes Local property taxes can be deducted as an expense against income. However, your real estate taxes are only deductible in the same year they are paid to the government.

Home office You may be able to deduct the cost associated with maintaining a qualified home office. Expenses such as painting and general upkeep are tax deductible.

Health-related improvements Home improvements made for health reasons are deductible from your taxes — as long as they aid those who are chronically ill or disabled, without adding value to your home.

Be sure to consult a tax professional if you have any questions regarding the details of these deductions and how they apply specifically to your returns. If you later remember an overlooked deduction that can be documented, the tax form 1040X can be used to amend your tax returns up to three years after the original due date. It pays off to take the extra time to check into all possible home ownership deductions.

For more home-owning advice, contact me today!

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