Our Flower Mound real estate professionals know there are many advantages to owning a home; however, you may not know that when it comes to tax time, homeownership can save you a bundle! You may already know you can deduct mortgage interest, but are there other benefits you may be missing out on? Keep reading – it could save you a pretty penny!
We’ve already mentioned mortgage interest, but here are a few more ways to save you may not know about.
Property taxes are deductible in most cases, and it could result in hefty savings for many homeowners. The average household property tax is just over $2,100 according to the U.S. Census Bureau.
Have a home office? Be sure to deduct home office expenses if you work from home, along with what constitutes your office space! While the office must be a true, dedicated office and not just a desk in the corner of the bedroom, in many cases those with home offices can deduct $5 per square foot for office space of 300 square feet or less. That’s another $1,500 deduction you can check off the list!
Made any “green” updates to your home? Whether a new HVAC system, solar panels, energy-efficient windows, or even wind turbines there are several credits you may be able to claim depending on the improvements you made. For instance, you could claim up to 30% of the cost of solar panels under the Residential Energy Efficiency Property Credit!
Those who are aging in place may enjoy tax write-offs. Many seniors are choosing to “age in place” today; that is, they want to stay put in the homes they’ve loved and lived in for years. Making updates that allow you to remain in your home such as a wheelchair ramp, stairway handrails, or bathroom renovations such as slip-resistant flooring can result in a substantial tax break. Keep in mind that in order to take advantage of this, renovation costs must be more than 10% of your adjusted gross income.
You can learn a lot about these and other tax benefits of homeownership by researching online. There are so many reasons to own your own home!
Looking to buy the home you’ve always dreamed of in the North Texas area? Trust the Flower Mound real estate experts at Team Nelson to help you find the perfect home quickly, and without all the stress!