For many people, buying a home will constitute the largest purchase ever made in their lifetime. There are many variables to consider when committing to your own residence – starting with the expense factor. Here, you will typically have the cost of obtaining a mortgage, as well as a myriad of maintenance and repairs over time. Then there are the added costs of intangibles like taxes and insurance.
While most people don’t necessarily like doling out large sums of money – especially when it comes to insurance premiums and property tax – the good news is that many of these items could provide you with valuable deductions at tax time.
For example, the following could be tax deductible, in turn, helping you to recoup some of your costs:
- Mortgage interest – One of the biggest property-related tax deductions can be the interest that you pay on your mortgage. And, if you own an investment or a rental property, the mortgage interest on these investments can also qualify as a tax deduction.
- Points – If you paid any points in order to obtain your mortgage, these too may be deducted.
- Property taxes – Property taxes are another potential tax deductible item. While some people pay these outright each year, others will have them added into their monthly mortgage payment. Either way, don’t forget to include these when filling out your yearly tax return.
- Home improvements – In some cases, home improvements may also qualify as a tax deduction. For example, if you need to make modifications due to a medical condition, Uncle Sam will usually allow these to be included.
Are you considering making a move to a new home soon? If so, we can help. Whether you’re a first-time home owner, or you are looking for a different space to call your own, give us a call and we’ll help to answer any questions that you have.