Homeowner Tax Deductions and Credits

Homeownership comes with a lot of advantages, especially when it comes to tax time. Make sure you’re not missing out on important home-related tax deductions. As always, please consult your tax advisor to find out which deductions apply to you. Deducting Mortgage Interest The interest you pay on a home mortgage is usually tax-deductible. You are allowed to deduct interest on multiple mortgages, as long as they add up to less than $1 million. The one criteria being that the money was used for buying, building or improving a home. Every year, you should receive a “Form 1098” from your lender which details how much mortgage interest you paid. To claim this deduction, you need to fill out “Schedule A”, under “itemized deductions” to record your interest deduction. Home mortgage interest deductions can also include late payment charges and pre-payment penalties. The only requirement is that they were not for a specific service received in connection with your home loan. Deducting Real Estate Taxes Real estate taxes are also tax-deductible. Your interest statement should list the amount of real estate taxes you paid if your taxes and homeowners’ insurance were placed in an escrow account when you closed on your mortgage. If your real estate taxes aren’t included on the statement, review your canceled checks to figure out the total amount of real estate taxes paid. Deducting PMI (Private Mortgage Insurance) If you buy a house with less than 20% down payment, you will most likely have to pay private…

Top 3 Tips for a Greener Home

Do you want to lower your energy bill each month? Or maybe you just want to find ways to save - without doing any major home improvements like installing a solar panel on your roof. Well good news, being green doesn’t have to cost a lot of money, and it can make a huge difference in your energy usage and pay for itself many times over. Here are some simple changes to not only help the environment, but save you money.