While there are many benefits to being a homeowner, one in particular is the unique type of tax breaks made available to today's modern homeowner. For example, because interest payments make up such a large portion of the mortgage payment, mortgage loan interest can be a substantial and important tax write-off. However, it should be noted that interest payments are typically larger in the earlier years of a loan. It is important to consider that even home equity loan interest is deductible.
Home Improvement Loan Interest
In addition, the interest on a home improvement loan can also be an excellent write-off for those wishing to maximize the benefits of being a homeowner, especially in terms of paying taxes. This type of interest deduction is usually calculated differently than the interest on a primary mortgage. Talk with your tax professional to know for sure how home improvement loan interest can be worked into your annual tax filing planning. For example, capital improvements as compared to routine repairs can be calculated differently.
Capital Gains Exclusion
One of the more obvious types of tax breaks that homeowners can enjoy is writing off property taxes. In most cases property taxes are fully deductible and can have a big impact on your overall tax bill. Another key consideration for homeowners is that of the capital gains exclusion. In most instances, homeowners who sell their property after holding it for at least two years can enjoy tax-free profits. Most notably, this type of tax break can be employed multiple times over the course of years as long as one qualifies.
Deduct A Portion Of Those Costs From Taxes
Those who work from home can take full advantage of home office deductions when filing taxes. Anyone who has a home office that they are using exclusively to operate a business can deduct a portion of those costs from taxes. Working with your accountant, CPA or other tax professional is the best way to maximize this type of tax credit. Even utility costs, insurance and other related expenses can be written off by those who work from home or operate a home-based business. Equally useful is something known as the energy tax credit. Homeowners who upgrade to more energy-efficient appliances or materials can save substantially on annual taxes. Talk with your tax expert as a way to gain the greatest energy tax credit advantages.
Storing Personal Household Items
Finally, those who are moving or selling their home can enjoy certain tax breaks that should not be overlooked. When moving for a job, moving costs are typically partially deductible. Even the expenses associated with storing personal household items or travel and transportation can be included in most situations. When it comes time to sell a home in Anacortes, any taxable capital gains can be reduced by selling costs such as real estate commissions, title insurance or even home inspection fees. Contact Nicole Haun now by visiting Realestateinanacortes.com today to learn more. Nicole has MLS listings in Anacortes that make finding a home easy.
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