'Tis The Season, Tax Season'

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'Tis the Season. Tax Season!

Now that you have finished making your New Year's Resolutions it is time to start getting prepared to file your 2017 taxes.
There are many different home-related expenses which you can deduct on your tax return to reduce your taxable income.


Make sure to REAP all the rewards of home ownership on your taxes!

 

What Tax Deductions Can I Claim Related
to the Common Costs of Purchasing a Home?

You may claim the following expenses on your tax return if you itemize: 

  • Home Mortgage Interest payments (usually reported on Form 1098)
  • Real estate taxes
  • Mortgage points (each point is equal to one percentage of the loan amount)

What Are Home-Related Expenses That
Cannot Be Deducted?

The following expenses cannot be claimed as tax deductions: 

  • Fire, flood, or homeowner insurance payments
  • Amounts paid to reduce your mortgage principal
  • General home improvement and maintenance expenses
  • Mortgage Insurance Premium payments
  • Home energy savings

What Types of Home Improvements Can Be
Claimed as Tax Deductions?

Some types of home improvements can potentially lower your tax obligation when you sell your home. Such expenses may include replacing a roof or adding an extension, which increases the usefulness and value of your home. These types of expenses/deductions cannot be used until you sell your home. However, all records should be kept for future use, since any home improvement costs can add up over the years. Be mindful that any normal repair or maintenance on your home is not tax deductible.

What Are Additional Deductible Home
Expenses and House Tax Deductions?

You may also claim tax deductions for the following expenses: 

Where Can I Find More Information on
Tax Deductible Home Expenses?

Additional information about home related tax deductions may be found in IRS Publication 530-Tax Information for Homeowners.

TIME TO BUY A HOUSE & SAVE MONEY!