When it comes to paying taxes, it is always nice to be able to find deductions. Here are five that you may be able to use.
- Mortgage Interest: The amount that can be deducted depends on when you bought the house and how much you paid in interest. If you purchased you home before December 16, 2017, a married couple filing jointly can deduct up $1,000,000 in interest while a single or married couple filing separately can deduct up to $500,000. If the home was purchased on or after December 17, 2017, the number change to $750,000 for married couples filing jointly or $375,000 for the single person or married couples filing separately.
- Real Estate Tax: Another cost that can be deducted is your real estate taxes. This can also be done for rental properties that you own. The only stipulation is you can only deduct the taxes for the year in which you are filing.
- Home Office: Are you running your business from home? That’s another deduction! If you are self employed or an independent contractor you would qualify for this deduction. However, this is not allowed for folks working from home. In other words, if you receive a W-2 from an employer, you you cannot claim this deduction.
- Home Improvements: Certain home improvements can be deducted from your taxes. This works if you take out a home equity line of credit tp pay for the remodeling work. You are able to deduct the interest from that line of credit.
- Renting: Say you are a snowbird and head south for the winter. You may rent out your house while you are away. If you do this, some of the costs can be deducted which will offset the money you bring in from the rental. A couple of items that could be deducted include utilities, mortgage interest and insurance. These would only be from the months the home is rented out.
To read about more possible deductions or credits, click the link below.
Read the Original Article Here: Tax Breaks for Buying a House: 13 Tax-Savings Opportunities You Might Be Able to Claim
