Owning a Home Can Save You at Tax Time

irs tax creditsI have good news and bad news. The bad news – April 15, tax time, is just around the corner. The good news – owning your own home can reduce your tax liability. Here are seven tax deductions that can save you money now!

  1. You can deduct home mortgage interest, up to certain limits, on Schedule A of your Form 1040.
  2. You may be eligible for deductions for discount points, loan origination fees or loan charges if you purchased or refinanced a home last year.
  3. Qualifying home mortgage insurance may be deductible.
  4. Local and state real estate property taxes are deductible on Schedule F of your Form 1040.
  5. If you sold a home last year, you may be able to deduct title insurance, advertising and real estate broker fees on your tax return.
  6. Did you move more than 50 miles for a job? A portion of your moving costs could be deductible. Certain limitations apply.
  7. Did you make energy saving improvements to your home last year? You might be eligible for a tax deduction or credit. Visit gov for more information.

For advice on your individual tax situation and eligible deductions, please contact your accountant. He or she can best advise you on which tax deductions apply to you.

Source: American Home Shield

Marti Reeder, Realtor, Managing Broker