One of the
many perks of homeownership is big tax breaks. So whether you’re doing your
taxes yourself or getting help from a professional, it’s important to take
advantage of those breaks!
Mortgage Interest Deduction: Before buying a home, a
standard deduction may have made the most sense when you prepared your taxes.
But homeowners can deduct the interest portion of their mortgage payments, and
the earlier you are in your mortgage, the greater the percentage of each
payment that goes toward interest, so take advantage right away! Contact your
mortgage servicer if you need a copy of your 1098, which will have the total
amount of interest paid for last year.
Home Office: This deduction is often
overlooked, which is unfortunate since one of the items Buyer's are looking for is a dedicated home office space. Utilizing a home office is the
trend as computers connect us more each day and allow us to avoid a commute one or several days each week. There are specific criteria that
have to be met in order to deduct home office expenses, but it can lead to a
very large deduction. In general, your home office has to be used specifically
for business purposes. Check with a tax professional to see if your home office
qualifies for a deduction—it’s a little extra work, but can make a big difference
in your tax burden.
As always,
if you need a referral for an excellent CPA, or any other help, please let me
know. Happy to share my vendors with you.
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