Buying a home in the Dallas-Ft. Worth Metroplex area is no doubt exciting; you have finally found the perfect home for you and your family. There are lots of perks of homeownership, but have you thought about tax write-offs? Taxes are something most of us don’t want to think about – but in this case, it’s a good thing!
Our Flower Mound real estate agents have a few tax write-offs to share with you that you may or may not be aware of:
Home office. Considering that many people work from home today, thanks to modern technological advances such as the Internet and smart phones, you may be eligible for the home office deduction. You may work from home full-time or have an office in your home where you work remotely on occasion.
Did you recently take a new job which required you to move? If you accepted a new job that was farther than 50 miles from your prior home and had to move, you may be able to deduct moving expenses which include those to move your furniture and possessions, as well as lodging for yourself and your family.
Mortgage interest. As you probably already know, most of the mortgage payment you make each month is interest. If your home loan is under $1 million, all of the interest you pay is deductible. Own a vacation or second home? The interest on that home is deductible, too! Also keep in mind that if you refinance your home or obtain a home equity loan, it’s likely that it is fully deductible if $100,000 or less.
Property taxes. Property taxes are another major deduction for homeowners, and should be deducted on Schedule A as an itemized expense. However, you and the seller will share this deduction if it is your first tax year in your new home, based on the portion of the year that the seller owned the home, and the portion that you owned the home.
These are just a few tax write-offs homeowners enjoy; also consider points, casualty loss, and energy credits depending on your situation.
Sure, owning your own home in North Texas does mean expenses – but there are plenty of advantages to homeownership as well! At Team Nelson, our Flower Mound realtors want to help ensure you enjoy all of the deductions you’re entitled to at tax time. If you’re in the market for a new home or looking to sell, we’re the team you can count on to make the entire process seamless and less stressful. Give us a call today!