As a homeowner, there are several potential tax deductions and credits you may be eligible for. However, tax laws can vary by location and change over time, so it's essential to consult with a tax professional or accountant for personalized advice.
Here are some common tax write-offs for homeowners in many areas:
Mortgage Interest: You can usually deduct the interest paid on your mortgage loan, subject to certain limits. This deduction can apply to both primary and secondary homes.
Property Taxes: You can typically deduct the property taxes you pay on your primary residence as an itemized deduction on your federal tax return.
Points: If you paid points to obtain your mortgage, you may be able to deduct them in the year you paid them, subject to certain conditions.
Home Office Deduction: If you use part of your home exclusively for business purposes, you may be able to deduct expenses related to that portion of your home, such as utilities, insurance, and repairs.
Home Equity Loan Interest: Interest paid on a home equity loan or line of credit used for home improvements or other qualifying purposes may be deductible, subject to certain limitations.
Energy-Efficient Home Improvements: Some energy-efficient home improvements, such as installing solar panels or energy-efficient windows, may qualify for tax credits.
Medical Home Improvements: If you make home modifications for medical reasons, such as adding wheelchair ramps or installing support bars, you may be able to deduct these expenses if they exceed a certain percentage of your adjusted gross income.
Casualty and Theft Losses: If your home is damaged or destroyed by a sudden, unexpected event like a fire, storm, or theft, you may be able to deduct the losses not covered by insurance.
Moving Expenses: While the deduction for moving expenses was eliminated for most taxpayers under the Tax Cuts and Jobs Act of 2017, members of the armed forces on active duty who move due to a military order may still be eligible to deduct moving expenses.
Remember that tax laws can be complex, and eligibility for deductions and credits can vary based on individual circumstances.
It's crucial to keep accurate records and consult with a tax professional to ensure you're taking advantage of all available tax benefits.