Tax Deductions All Homeowners Should Be Taking Advantage Of

One of the major benefits of owning your house is the tax deductions that you are able to take advantage of. When filing your taxes, make sure to take a look at these tax breaks that can help you save big,

Mortgage Debt Forgiveness

If your home was foreclosed on during the housing crisis or you qualified for a repayment adjustment, you don’t have to worry about claiming the forgiven debt as income when you file your taxes.

Mortgage Insurance Premiums Deductions

If you were required to buy private mortgage insurance (PMI) when you bought your house, you may be able to write it off. If you qualify and the tax extenders bill is approved for 2016, you will be able to claim a deduction for what you spend on your PMI, as long as you itemize your deductions.

State and Local General Sales Tax Deductions

While you are required to pay property taxes when you buy a house, you will be able to deduct them on your taxes, as well as the interest that you pay on your mortgage. You deduct the taxes and interest from your gross income, helping to reduce your taxable income as a whole.

Energy Efficient Improvement Tax Credit

If you installed qualified windows, insulation, doors, or a roof at your house, you may be able to get home improvement tax credits up to $500. Make sure to keep track of any updates that you make to your house so that you can enjoy the credit.

For all of your real estate needs to start enjoying homeowner tax benefits, contact Judy Qualls, serving Irvine, Orange County, and surrounding California areas.