When looking for deductions as a homeowner, make sure that you have all the information necessary to receive the full income tax deduction. When tax time comes, your home can be a huge tax deduction. Most taxpayers are aware that they can deduct the mortgage interest on their primary residence but you can also deduct the mortgage interest on your second home.
What can I deduct?
To take full advantage of your mortgage tax deduction you can deduct your property taxes, a home-equity line of credit up to $100,000, private mortgage insurance premiums, points that you paid when you purchased the home, and even home modifications for medical reasons.
What canʼt I deduct?
You may not deduct expenses for home improvements but keep close tabs on those expenses as they can help reduce your taxes should you decide to sell your home in the future. You may not deduct insurance for your home, any home appraisal fees, or any association dues related to your home ownership.
How much will I save?
These savings can huge but the actual dollar amount will be different depending on many variables. It will depend on your filing status, the amount of your total taxable income, and other standard and itemized deductions.
To make sure you are getting the full tax deductions available as a home owner we suggest using some type of computer software such as TurboTax to help you determine the amount you can deduct.
Turbotax online offers free tax estimators and calculators to help you with determining the amount of your tax return. TurboTax online help you maximize your tax deduction whether you are a current home owner or looking to buy a home this year.