Are you a new homeowner this tax season? Don’t fret! Although tax preparations become a little bit more complicated as a homeowner – you can now deduct many home-related expenses.
While we are definitely not tax experts and highly recommend consulting a tax professional, here are a few things you may want to consider as tax time approaches.
To Itemize or Not to Itemize
This is typically one of the first questions you must consider as you attend to your taxes this year. How do you decide? Well, you have to determine which option will benefit you more – itemizing your deductible expenses or claiming the standard deduction.
The IRS has put together Six Facts about Choosing the Standard or Itemized Deductions to help you determine which method gives you the lowest tax. Click to view Schedule A (Form 1040) – Itemized Deductions and the 1040 Instructions.
A Few Deductible Homeowner Expenses
Mortgage interest is by far the biggest tax break available to homeowners. For most homeowners, the bulk of your monthly payment goes torwards interest. Mortgage interest is deductible, but there are limitations for high income earners. Consult a tax professional if you fall into this category.
Federal laws grant taxpayers a deduction of property taxes paid from their gross income when figuring taxable net income. Any state, local or foreign taxes on your property are deductible, as long as the same tax is levied on all other property in the community. Although subject to conditions and restrictions, the property tax deduction still affords helpful financial assistance to homeowners, many of whom are subject to property taxes as well as income and sales taxes in their state.
Other Helpful Tax Resources
We recommend you check out 9 Easy Mistakes Home Owners Make on Their Taxes. We are not trying to scare you or anything – but mistakes happen.
Looking to file your taxes for free? Many participating software companies make their tax preparation software available through the IRS. Visit the IRS for more information.
Not a homeowner yet? Ready to start reaping the rewards of homeownership? Contact a licensed Inlanta Mortgage loan officer near you to learn about the loan programs available in your area.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.
Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.
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