Homeowners and Tax Advantages

 

The U.S. tax code is designed to offer incentives to homeowners, and by taking advantage of these breaks, 1040 filing citizens can maximize their financial investment in homeownership.

Mortgage Interest Paid can provide a large tax break – especially in the early years of a home loan. This is because the standard mortgage amortization schedule is front-loaded with mortgage interest. Mortgage interest tax deductions are extended to second mortgages, and equity loans.

Discount Points paid in connection with a home purchase or a refinance are often tax-deductible.

Real Estate Taxes

Home Improvements made for medical reasons, or renovations to accommodate a chronically ill or disabled person, and the renovations do not add to the overall value of the home, the project costs are typically tax deductible. Repairs and improvements made for aesthetic purposes are not tax-deductible.

Home Offices: homeowners who work from their residence can typically deduct the expenses of maintaining a qualified home office.

Posted on January 21, 2014 at 10:46 pm
MJ Steen | Category: Uncategorized | Tagged , , , , , , , , ,

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