It’s April, which means that Tax Day is quickly approaching. Filing your taxes can feel like a daunting task, especially for homeowners. Whether you’re doing your taxes yourself, or hiring someone to do so, it’s important to understand how you can save as much money as possible.
These write-offs are some of the best options for homeowners.
- Mortgage Interest: This is the biggest deduction for homeowners. You must itemize the deduction, but it must be greater than the standard deduction. You can also use any mortgage points that you used when you purchased your home. (Fox Business)
- Property Taxes: Yes, you can write-off certain taxes. You can write off your property, state, and local income taxes. (Time.com)
- Home Improvements: Technically, the only home improvement write-offs you can deduct are those that were necessary for medical reasons like installing a wheelchair ramp outside of your home. Note that it’s advised that you keep all of your receipts for non-medical home improvements because it’s possible that they can be used to reduce your taxes when you’re ready to sell your home. (TurboTax)
- Moving expenses: If you moved more than fifty miles for a new job, you can write off moving expenses. Talk to your employer to get the necessary paperwork. (Time.com)
- Home Office: Do you run a small business from the comfort of your home? You’re in luck! You can file for a home office deduction. This even includes everything from the cost of painting the room, to the cost of buying a computer and home office supplies. It’s best practice take a picture of the office to have on record. (TurboTax)
- Energy efficiency: You can get a deduction for owning energy efficient appliances. Heat pumps and solar powered systems garner the highest deductions. Items like energy efficient windows are the next highest deductible. Keep your receipts for your records. (HouseLogic)
If any of these write-offs apply to you, take the extra time to fill out the paper work. It may benefit you in the long run!
Call Larry Mitchell with Century 21 Randall Morris & Associates at 254 681 5115