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It’s Tax Time! Did You Know…

 

Tax Time

Did you know merely owning a home could mean you qualify for tax breaks?

1. On a mortgage of up to $1 million, you can deduct the interest that you pay at settlement if you itemize your deductions on Schedule A (Form 1040). 

2. Did you pay points in order to obtain your home mortgage? These fees can be deducted as long as they are associated with the purchase of a home. If you refinanced your home, these points are still deductible. 

3. As long as they are based on the assessed value of the real property, you can deduct your state and local property taxes. 

4. If you sold a home in the past year, you may be able to reduce your income tax by the amount of your selling costs. These costs can include things such as repairs, title insurance, advertising expenses and broker’s fees. 

5.If you use a portion of your home exclusively for the purpose of an office for your small business, you may be able to claim a deduction on your taxes for costs related to insurance, repairs and depreciation. (Only claim this deduction if the space within your home is used exclusively and regularly as either your principal place of business or a place where you meet and deal with customers or patients.)

6. You may be able to deduct the premiums paid for private mortgage insurance for your principle residence and for a non-rental second home. 

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7. If you’ve taken out a loan to make improvements on your home, you may be able to deduct the interest on this loan. 

8. If you take out a construction loan to build a home, you may qualify to deduct the interest. The IRS only allows a deduction for mortgage interest if the loan relates to a “qualified” home, which means it must either be your principle residence or a vacation home that you will use for personal purposes. 

 

To learn more about South Miami or any other community – including Coral Gables, Coconut Grove, Pinecrest and Palmetto Bay, contact Val Byrne with EWM Realty International on www.MiamiRealEstateWorks.com or email at [email protected] or by phone at 305-323-6231. Val Byrne – Working For You!