Owning a home makes sense financially in many ways. This is never more apparent than at tax time, when homeowners enjoy a number of appealing tax deductions.
With the deadline for filing taxes only weeks away, Realty Times reminds homeowners of these associated deductions:
Property tax deduction: Anything paid to state, county and city property tax assessors is a fair deduction.
Mortgage interest deduction: Interest on both first and second liens is tax deductible, as are any points paid to obtain a lower interest rate. Private mortgage insurance payments are also deductible.
Closing and moving costs: Some closing fees are deductible, as are some moving expenses.
Home office deductions: If you work primarily from home, you might be eligible to deduct many expenses (or a percentage of those expenses) associated with the workspace, such as phones, utilities, computers, insurance, Internet costs and so on.
Energy efficiency expenses: If you’ve purchased appliances and systems that meet government Energy Star standards, a portion of those expenses are deductible.
Property sales benefit: Homeowners who sold their primary residence in 2015 may be eligible for capital gains exclusions of up to $250,000 if they’re single and $500,000 if married.
Be sure to consult a tax expert for further details.