When owning a home you might not be aware of some of the items that are tax deductible for upcoming tax season. Here are the top 5 deductions or tax tips for homeowners that you can take on your taxes leveraging your home.
Donations
Spring time is a great time to declutter and clear your home of unwanted items. So take those items found around your house that you no longer need or want to a local charity and submit your donation receipts for deduction when tax time hits.
Mortgage Interest
Mortgage interest is one of the best tax breaks you have as it relates to your home. As you pay your mortgage, a lot of yourmonthly payment is interest and so deducting this item on your annual taxes can help you get some tax incentives. This may be one of the tax tips for homeowners that you are familiar but did you know that interest on second homes may be deductible.
Along the same lines, if you own a second home, your interest on your second home mortgage is also deductible. There are some requirements and conditions in order to leverage these deductions. You must vacation for at least 14 days at your second home and rent the home for less than 10% of the year in order to receive the interest deduction on your second home.
Property Taxes
Property taxes are either in your monthly mortgage payment or you pay them directly to your state government agency. The specific allocation of property taxes is deductible. Find the necessary details on your mortgage documents or telephone your mortgage company to secure the original documents indicating your property tax amount.
Second Home Repairs
For those owning second homes and specifically rental properties; you can deduct specific repair updates on maintaining the home. Home maintenance is necessary to keep a home functioning properly and conducting these updates are often tax deductible. For your primary home, home improvements are deductible but only after you sell your home. So keep your receipts in order to leverage home improvement projects deductions when you are ready to sell your home.
Moving for a New Job
If you are moving for a new job and your employer is not paying the expenses, you can deduct certain expenses that you will incur for the move. Moving your possessions, lodging expenses, and storage costs are a few of the expenses you can deduct. These tax deductions are constantly changing, so make sure you check with your accountant prior to making any claims.
Keep your receipts and submit them to your tax advisor for a detailed review of your tax preparation.
We hope these tax tips for homeowners were helpful, but please read the necessary IRS documents and consult with your tax adviser to learn more about your local tax guidelines and confirm specific deductions.
