So by now you’ve probably been thinking about your Federal and State taxes, and maybe even preparing just a bit for them. And you can wait if you want, even for a few more months, but eventually, you’ll need to read this post and get to work filing your taxes.
As a homeowner, there are a few things that you’ll want to consider. One of the most useful benefits of homeownership, after the right to paint those bedrooms purple, is tax deductions. If this is your first year of owning a home, then check out this list!
#1: Property Tax ~ any money paid during the year to your town/city property tax is deductible.
#2: Mortgage Interest ~ any money paid towards mortgage interest on your first or second mortgage and any private mortgage insurance payments are deductible.
#3: Closing Costs ~ some of the costs paid at your closing are tax deductible (ask your accountant which ones to include). Your may even be able to deduct some of your moving costs.
#4: Home Office ~ you may be able to use your home office as a deduction as well.
There may be others (his is when your accountant not me, your real estate agent is the professional!) so save all of your receipts for purchasing (your Closing Statement) as well as receipts for repairs, remodeling, parts etc. My advice is to save everything for seven years, but again, let your accountant guide you on that!
If your still renting, know that your landlord is getting all these benefits…wouldn’t you rather get them for yourself??