Being a homeowner is a beautiful thing, and with it comes many advantages. There are several tax tips that can benefit you greatly, and we hope to assist you throughout this article. We want you to enjoy your home, and make it your own. And without the extra expenses/costs. This is a place your family will grow, and memories will be forged. So below, we have included some tax tips for new homeowners that will help keep things intact.
Mortgage Interest
When you have to pay taxes, the important question is whether you can save money with paying less while deducting the costs, or if you can just pay the whole amount. So depending on the mortgage agreement, you might have a heftier tax credit than the standard one, so we know that a lot of the monthly mortgage checks are being increased towards the loan itself. You can start by writing off the expenses.
Property Taxes are Deductible
The thing that you might not realize is that you are paying local and state taxes, with every mortgage payment. That said, if you look up the costs of the property taxes on the listing, you will see which taxes you need to pay and which taxes were paid by the previous owners. You can deduct the amount according to the taxes.
Expenses on losses
If something happens to your home, like damage from a fire, the casualty category will allow you to deduct the taxes and pay less. But if an insurance company is to secure your property, no deduction will be allowed for the taxes.
Debt Cancellation
If you plan to cancel out your debt, you need to be aware of few things. Debt cancellation is income, which hurts you. For example, if you owe your mortgage lender, and you sell the home for less than you bought it, you will be in a huge deficit. The foreclosures work in a different manner. if you are responsible for the mortgage, you will be also responsible for the cancellation of the debt.
Taking advantage of the energy tax credits
This is also important if you don’t want to pay high bills for the energy. Also, you can get a tax credit up to 10% of the cost for the qualification of water heaters, heat pumps, water boilers, solar energy systems and solar powered generators.
More great ways to save money can be found here.
The flexibility to choose your home and decide how it will look is one of the biggest advantages. And if you follow these tax tips, you will reduce the amount you have to pay. All of which will allow you to invest and build value in your home.
Also, here are several other ways you can save money
