For many people, a home is not only a shelter for their family, but also the only real tax shelter available. At CompleteTax, we can help you with future tax filings with information on property tax and real estate taxes. We offer information on:
Some very important reasons for owning a home: the opportunity to reduce your income taxes by deducting your mortgage interest payments, the points you may have paid when taking out your loan, and your real estate taxes. Your home can provide you with a home office tax deduction, home improvement tax deduction or a simple property tax break. These real estate deductions can add up significantly, saving you plenty of money. In order to claim these tax breaks, you'll need to itemize your deductions. It's important to note that if you're itemizing to claim home mortgage and real estate taxes, you'll also be able to claim any itemized deductions for state and local income taxes, charitable contributions, casualty losses, employee business expenses and other miscellaneous deductions that exceed 2 percent of your adjusted gross income (AGI) and medical expenses that exceed 7.5 percent of your AGI. These deductions can save you many tax dollars-and most people who don't own a home can't take advantage of them. In this section of the Guide, we'll outline the major rules you need to know in order to maximize your home-related tax deductions, including home office tax deduction and home improvement tax deductions. We'll also discuss how to handle the purchase or sale of your principal residence. Let our home office tax deductions and more work to your advantage. Finally, for those of you who own investment real estate, we'll discuss the rules related to reporting rental income and deductions, and handling the purchase or sale of rental property, including second homes. For more information, see any of the following: |
