Tax Write-Off’s: 101- It’s that time of year again – tax season. It might not be a particularly enjoyable time; however, if you’re a homeowner, then there is a slew of tax write-offs that might be in the cards for you. Here are 6 tax write-offs that you might not be aware of, but should definitely take advantage of.
Your largest tax break could come in the form of your home, due to the fact that a majority of the check goes toward interest – and that interest is deductible. Whether it’s your home’s first mortgage, or you refinanced, generally, equity debts of $100,000 or less are fully deductible.
A large part of your monthly loan payment is likely going toward taxes. Luckily for you, the taxes will be an annual deduction as long as you own your home.
Selling Your Home
If and when you choose to sell your home, you will be able to avoid some of the taxes that come with the profit you’d be making. As long as the you owned the property for two years and lived in it for two of the five years before the sale, some portion of the profit will be tax free.
Loss Due to Weather
If you live in a place where there are some harsh winter storms, you may qualify for a casualty loss write-off. If you have to pay out of pocket for damage from a weather disaster, you may be able to write it off. This does not include anything that was covered by your insurance. However, the main thing you can do here is keep a documentation of everything you have and make sure you can prove the value of whatever was damaged.
If you have moved into a new home for the purpose of taking a new job, you may be eligible for a tax write-off. If the job is more than 50 miles away from your old home, you may be able to deduct lodging expenses for you and your family, as well as moving expenses to move your belongings.
Being a homeowner is expensive, but also incredibly beneficial. Being prepared for tax season and knowing the deductions available to you will save you more money in the long run. For more information on tax write-offs for homeowners, visit here.