Tax Breaks For Home Owners
Posted on August 19, 2010
Filed Under Taxes | Leave a Comment
Because the housing market has been so volatile, first time home buyers have been able to find amazing deals on their first home. Several have found fantastic deals and are already enjoying the perks of home ownership. Although you may already know that buying property is a fantastic investment, you may not know of the many tax incentives and benefits available to you as a home owner. Avoid many tax problems and determine which breaks and deductions are available to you. Here are some common tax deductions for home owners:
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.
Property taxes. Taxes paid on property and real estate are completely deductible.
Home office deductions. If you work out of your home, you can deduct some of the costs associated with that part of your house. This includes utility payments and part of your insurance.
Costs associated with moving. If you have to move more than 50 miles for a job, you can deduct any costs incurred during your transition. This includes storage expenses and transportation.
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. If you decide to sell your property, you may deduct some costs incurred within 90 days of the sale. These can include things such as 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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