Tax Deductions for HomeownersMar 31 2010
Top Five Tax Deductions Avaliable to Homeowners
As tax day approaches, it's helpful to be aware of all of the savings you may be entitled to. We have some of the top tax deductions you may be eligible for and some of these deductions could prove valuable when filing.
Unless your loan amount is more than $1 million, the interest you pay on your home is fully deductible. You can deduct interest on multiple mortgages too. For those that have a second home or investment property, you'll want to look into deducting this additional interest.
Real Estate & Property Taxes
Both your state and local property taxes can be viewed as an expense against your income and are deductable. Real estate taxes are deductible in the year they're paid to the government.
Points Paid on Purchased/Refinanced Loan
If you refinanced your mortgage, you may be able to write off the origination points you paid on your new loan. These points are deducted proportionately over the life of the loan.
A home office is defined as a principal place of business where you meet or deal with clients, patients, or customers. If you work from home and have a qualified in-home office, you may be able to deduct some costs associated with running your business, such as utilities and maintenance.
A solar-powered water heater is just one of the many home improvements you can receive a tax deduction for. Other energy-efficient home improvements, like double-paned windows, may also allow you to receive a tax deduction. Medical expenses, like wheelchair ramps and elevators can also be tax deductible.
To see whether or not these deductions directly apply to you, be sure to contact your tax advisor before proceeding with any of your filings!