Owning a home comes with various tax benefits that many homeowners might overlook. Knowing which deductions you qualify for can help you save thousands of dollars on your annual tax return. At Cao & Associates, CPA, we guide homeowners through the maze of real estate tax deductions to ensure you get the maximum tax benefits allowed by law.
Common Home-Related Tax Deductions
1. Mortgage Interest Deduction
One of the biggest tax benefits for homeowners is the ability to deduct mortgage interest paid on your primary residence and, in some cases, a second home. This deduction applies to mortgage debt up to $750,000 (or $1 million for mortgages taken before December 15, 2017).
2. Property Tax Deduction
You can deduct state and local property taxes paid on your home, up to a combined limit of $10,000 for state and local taxes (including income or sales taxes).
3. Points Paid on Mortgage
If you paid points to lower your mortgage interest rate when purchasing your home, these points may be deductible either in the year paid or spread over the life of the loan.
4. Home Office Deduction
If you use part of your home exclusively and regularly for business, you may be able to deduct expenses related to that portion, such as utilities, repairs, and depreciation.
5. Energy-Efficient Improvements
Certain energy-efficient home improvements, such as solar panels or energy-efficient windows, may qualify for tax credits that reduce your tax liability dollar-for-dollar.
Important Considerations
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Itemizing Deductions: To benefit from most home-related deductions, you must itemize your deductions instead of taking the standard deduction.
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Record Keeping: Maintain good records of all home-related expenses, mortgage statements, and property tax bills.
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Refinancing: If you refinance your mortgage, different rules may apply to deducting points and interest.
How Cao & Associates Can Help
Navigating home tax deductions can be confusing, but you don’t have to do it alone. Our CPA experts can help you:
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Identify all eligible home-related tax deductions
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Strategize tax planning to maximize your savings
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Ensure accurate tax filing and compliance with IRS regulations
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Provide personalized advice based on your homeownership and financial situation
Contact Us Today
Take full advantage of your homeownership tax benefits with professional assistance.
📧 info@caoandassociates.net
📞 425-230-7538 / 425-336-8675
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