Top Tax Incentives For Home Owners
The recent volatility of the housing market has had first time home buyers anxious to get into their first place. Many have found great deals and are enjoying the benefits of home ownership. While you may realize that purchasing property is a great investment for many reasons, you may not be aware of the many tax benefits available to you as a home owner. Avoid tax problems and get a leg up on breaks by understanding the deductions available to you as a home owner.
Interest on your mortgage payment. The interest accumulated on your home loan is tax-deductible. This is the case for interest on up to $1 million in mortgage debt.
Interest on home improvements. If the improvements you make to your home add to the value of your home, they can be tax deductible. This does not apply to maintenance or repairs. Work that is purely cosmetic doesn't apply.
Real-estate taxes are tax deductible.
Home office space. If you work from your home, you can often deduct costs associated with that portion of your property. For example, you can deduct a certain portion of your utility payments and insurance.
Moving costs. If you move more than 50 miles for a job, you can deduct costs incurred. These costs include transportation and storage expenses.
Energy efficient upgrades. If you make changes to your home to make them more energy efficient, you can be eligible for a wide variety of tax credits. Some of these credits have limits and must involve the purchase of certified materials. Check with the manufacturer to determine if your purchase is eligible.
Selling costs. When you decide to sell your home, certain costs you incur within 90 days of the sale can be deducted. This can even include carpet cleaning and painting.
Being aware of the tax deductions available to you can greatly reduce your liability with the IRS. If you are a first time or new home owner and are interested in such tax breaks, consult with an expert tax specialist. Knowing these deductions can help you file the appropriate documents. These well help prevent alerting the IRS to problems and bringing on an audit.
For trusted, expert tax problem specialists, visit http://www.guardiantaxresolutions.com/.
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