Every year the dreaded tax season comes… You get through the holidays and then, bam, time to start gathering those tax documents and find any and every possible tax deduction out there that you qualify for. Owning a home has a lot of benefits, including tax benefits that you can take advantage of. If you purchased or sold a home from me in the last year you will be receiveing a copy of your final settlement statement from your closing. Make sure to include that with your paperwork!
For your entertainment pleasure I am including this wonderful tax time music playlist! Below that you will find additional information on what some of the tax benifits you may have as a homeowner.
For most homeowners, the biggest tax benefit comes from deducting the interest paid on their mortgage. In general, homeowners are allowed to take an itemized deduction for mortgage interest they incur on their homes.
Another big tax break for homeowners comes in the form of deducting property taxes. This is also an itemized deduction. Every year your lender will send you a statement letting you know the exact tax-deductible amount for that year.
Private Mortgage Insurance.
Private Mortgage Insurance(PMI) is usually applied when you buy a house with less than 20 percent down. Homeowners who are paying PMI can deduct the premiums as interest on their tax return.The ability to deduct PMI for mortgages only applies to primary residences taken out in 2007 or later.
***Contact your tax professional for more information. This blog does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations.***