Preparing for your Taxes
30 March 2016
It’s hard to believe, but it’s that time of year when you need to start thinking about taxes. If you purchased a home in 2015, you want to pay close attention to your taxes this year as there are many tax deductions and credits to which you may be entitled. Your home is one of the largest tax write-offs you will have and may increase your refund (or at least decrease what you owe).
The amount of money you may be entitled to will depend on a variety of factors such as your filing status, your standard or itemized deduction amount, and your taxable income.
Here are some tax deductions that may apply to homeowners:
- Property taxes and real estate taxes on first and second homes
- Mortgage interest paid
- Points paid when the home was purchased
- The interest on up to $100,000 borrowed on a home-equity loan
- The premiums you paid for private mortgage insurance
- Home office deduction up to $5 per square foot with maximum of 300 sq. ft.
- Home improvements required for medical care
- Business expenses on rental properties
- Homeowners insurance on rental properties
- Exclusion on the net sales gain (selling price minus purchase price, plus any improvements) of up to $250,000 for an individual, $500,000 for a couple
- Casualty losses based on the net loss after insurance has been paid, and must be more than your adjusted gross income
1st Advantage Mortgage does not offer tax advice, please contact your tax professional for any tax-related questions.