It’s February. Do you know what that means? We are in the middle of tax season. Many people dread this time of year, but did you know that your home is full of tax advantages?
You should always consult a professional tax advisor, but here are some tax deductions that homeowners may be able to take advantage of when filing taxes:
Mortgage Interest: The interest you pay on your home mortgage is entirely tax deductible.
Real Estate and Property Taxes: Real estate and property taxes can be deducted as an expense against income.
Points Paid on Purchase or Refinanced Loans: The points that you pay at the closing table when you purchase a home are deductible for that year. If you refinanced, you may be able to write off points paid for your new loan.
Capital Gains with No Income Taxes: Once every two years, a single homeowner can earn a tax-exempt profit up to $250,000 and married couples do not have to pay taxes on up to $500,000.
Home Offices: You may be able to deduct the expenses you have made to maintain a qualified home office used for your business.
Home Improvements: Keeping all of your receipts from home improvements may help you prove that your home is worth more at resale, which can reduce the potential taxable gain when you sell.
Vacation Homes: You may be able to deduct some of the costs associated with owning a vacation home including real estate taxes, personal property taxes, points, and mortgage interest.
Moving Expenses: If you are a homeowner who recently relocated because of work, you may be able to write off the cost of moving.
Health-Related Improvements: If you make a home improvement for medical purposes that do not add to the overall value of the home, you may be able to deduct the expenses.