Let’s get 2023 rolling with an overview of possible ways homeowners could save big bucks. It’s time to start understanding potential homeowner tax breaks for 2022 before you file this year.
Potential homeowner tax breaks
Before we tackle potential homeowner tax breaks, we’ll start by saying each situation is different. So, remember to talk to your accountant or tax professional about your itemized deductions versus standard deductions to see which options are right for you.
Nonetheless, as you make your plans for the new year, consider finding out more about these possible tax breaks.
Mortgage Interest
One way to lower your taxable income is by deducting payments toward your mortgage loan interest. Be sure to check which mortgage interest deduction you may be eligible for based on how you file your taxes.
Home Equity Loan Interest
If you have a home equity loan, and you used portions of it for home improvements, you can claim a tax deduction on the interest you’ve paid.
Home Office Expenses
Do you use part of your home as an office almost exclusively or regularly? If so, certain expenses may qualify as tax deductions.
Home Improvements
If you made necessary home improvements or certain energy-efficient improvements, tax deductions or tax credits may be available.
For instance, if you added a railing or a ramp to make your home more accessible for medical reasons, you may receive a tax break.
Discount Points
Did you purchase discount points to lower your mortgage’s interest rate? Then ask your tax preparer to check and see if you can deduct the cost of the points.
Property Tax
Track your annual property tax payments and enter the total amount of real estate taxes paid on your itemized tax return.
Mortgage Insurance
If you are paying for private mortgage insurance, ask about deducting the payments on your itemized tax return.
Capital Gains
Have you lived in your house for two of the last five years? Did you sell that home for a profit? Find out if you qualify for the capital gains tax breaks.
Summary
Now that we’ve shared a little about understanding potential homeowner tax breaks for 2022, it’s time to start thinking about filing! Check out Ryan’s Helpful Contacts here for recommended accountants, lenders, and more. Continue to read our blogs for more homeowner tips, neighborhood showcases, and other topics.