Tax Day is quickly approaching! Have you taken advantage of all of the deduction and credit opportunities available to homeowners? Here are a few of the most common tax benefits that homeowners enjoy.
- Mortgage Interest – You can deduct the interest you pay on your mortgage provided it’s your primary residence and the mortgage is secured by your home.
- Real Estate Taxes – You can deduct any state or local property taxes in the year you pay them, up to a certain amount.
- Private Mortgage Insurance – If you paid Private Mortgage Insurance (PMI), VA loan funding fees, USDA loan funding fees, or FHA loan up-front mortgage insurance premiums you can deduct them from your taxes. Keep in mind that this only applies to those who meet certain income requirements.
- Medically Necessary Improvements – Have you renovated your home for reasons related to the health of someone in your household? There are several conditions to this deduction, but it’s worth looking into if you’ve made expensive improvements.
- Energy Efficiency – It pays to be green! You can typically deduct part of your expenses for things like solar panels and water heaters, geothermal heat pumps, and small wind turbines.
Keep in mind that your specific circumstances will dictate which of these tax savings you qualify to claim. There are also limits to how much you can deduct in each category, so be sure to check with your tax advisor before filing.