8 Homeowner Tax Write-offs
Are you aware of the tax deductibles you may qualify for as a homeowner? We’ve listed eight tax write-offs you can take advantage of while filing your taxes this year.
- Mortgage Interest Payments: As a homeowner, you may be eligible to deduct some of the mortgage interest payments, excluding the principle costs.
- Mortgage Points and Insurance: Another perk of being a homeowner is the ability to deduct the points you’ve paid on your mortgage and your home equity loan. This will also allow you to deduct any premiums you’ve purchased for private mortgage insurance (PMI) on your loan.
- Property Taxes: You have the ability to deduct property taxes on your taxes. Most homeowners can add their property taxes as a deductible expense. Remember to save your property tax bills and proof of payment.
- Home Office Deductions: If you work out of your home, you may be eligible to add a home office deduction to your taxes.
- Energy-Efficient Credits: If you’ve added energy-efficiency appliances to your home, you may be eligible to receive a credit up to 10 percent of the cost. This credits applies to purchases made for new windows, doors, light bulbs, etc.
- Medical Home Deductions: Individuals who have a medical condition that require home improvements, such as adding a stair lift or air filters, may be able to use medical home deductions as a write-off expense.
- Home Sales: If you’ve recently sold a home, you’re entitled to add deductible expenses such as real estate agent fees, advertising, and title insurance. In addition, you can also deduct home improvements before selling, but only if you have taxable gain from selling the home.
- Home Damages: Has your home been damaged by the rain, snow, hail, fire, or theft? You may use these home damages as a deductible when filing your taxes. This only applies if your loss was greater than 10 percent of your income and couldn’t be covered by your insurance provider.
As a reminder, always check with a certified public accountant (CPA) for any questions regarding your taxes. To read more about the eight homeowner tax write-offs, visit Zillow.com .