After you’ve found your dream house, a lot of time, care and love goes into making that house a home. Owning a home comes with a unique set of challenges and advantages, including tax benefits.
According to the Tax Policy Center, homeowners can deduct both mortgage interest and property taxes, as well as other expenses, from their federal tax income. These deductions are added benefits for homeowners.
Tax relief starts with itemizing all possible deductions. H&R Block recommends looking at your charitable contributions, as well as state and local income taxes along with other possible deductions listed on their website.
Buying a home is a financial investment that helps homeowners grow equity over time, and homeownership is an investment in your future. When it comes time to face tax season, keep in mind all the possible deductions that could apply to you and your loved ones. A home office deduction may be a possibility for you.
Itemizing deductions does have its benefits, according to H&R Block. For homeowners, up to two homes with mortgages taken on or before Dec. 15, 2017, interest up to $1 million in acquisition debt is applicable for deduction. For mortgages taken after that date, the price limit is $750,000 for the mortgage interest tax deduction.
Taxes can be a daunting task, but after you’ve found your Darling Homes dream home, you will hopefully find tax deductions that work to your advantage.