A robust housing market means many newcomers are joining the homeowner ranks. Along with
the joy of home ownership, comes the pain of costs such as mortgage payments, repairs and
maintenance.
The good news is that some of those home-related expenses are tax deductible if you opt to
itemize your tax-deductible expenses on Schedule A. For most homeowners, the additional work
of collecting statements and keeping track of expenses is worth it.
Unfortunately, some costs associated with owning a home are not tax deductible. Those include
fire or earthquake insurance, homeowner’s association dues and local assessments for sidewalks
or utility connections.
Here are a few homeowner expenses you can deduct on Schedule A:
Mortgage interest: One of the most substantial deductions for many homeowners is the interest
you pay on your mortgage. Not only can you deduct the interest you paid throughout the year,
you also can deduct any points you paid when you took out your mortgage. And, if you have a
home equity loan or line of credit, you can deduct that interest as well even if you didn’t use the
money for home improvements. There are limits to the amount you can deduct so be sure to
consult your tax professional or check out IRS Publication 530.
or sold their home during the year, property taxes will be pro-rated based on your closing date.
If your property taxes are impounded, check your year-end statement to determine the amount
paid on your behalf.
Mortgage insurance: If your insurance contract was issued after 2006, the cost of your
mortgage insurance is tax deductible. However, the deduction is reduced once your adjusted
gross income exceeds $100,000 on a joint return or $50,000 for married filing separately.
Capital gains: If you sold a home in 2016, you can claim up to $250,000 of profit ($500,000 on
a joint return) without paying capital gains on it. However, you will be taxed on any profits
above those amounts. Certain ownership and residency requirements apply.
Solar energy credit: Homeowners who installed residential solar systems in 2016 are eligible
for a 30 percent tax credit.
Keep in mind, these are just suggestions. Make sure to consult your tax professional to confirm
that these write-offs are right for you.
Need a great Tax Advisor or CPA? Ask us we always have a fantastic network of professionals!
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About – Lori Alvarez is the CEO of Lori Alvarez & Team, kw Realty East Foothills who has been building her family legacy since February 2007. Where by the blessings and graces of God she has taken her team to be #1 TOP AGENT in Listing and / or Sales Agent for 2011-2016 in her Glendora office. She uses the MREA (Millionaire Real Estate Agent) models as an operations manual, many other amazing mentors, and her faith in God! Lori Alvarez can be reached by e-mail at Lori@Lorialvarez.net OR friend me on facebook OR Tweets available on Twitter! However my favorite is by phone at 909-227-4196! Rock with us on Youtube - click here! To check out Lori's Listings click here!
'For I know the plans I have for you,' declares the LORD, 'plans to prosper you and not to harm you, plans to give you hope and a future. Jeremiah 29:11
