Tax Time: 5 Tax Deductions to Consider

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As a tax paying home owner there are a few tax deductions you might consider taking advantage of this tax year. Of course, you will want to consult with your CPA or tax preparer to get advise on your specific tax situation, but this list may be helpful in your research or in starting the conversation with a tax professional. 

Remember to keep a copy of your final Closing Disclosure or CD handy at tax time. It will help determine what items qualify for deductions. 

  1.  MORTGAGE INTEREST DEDUCTION - This deduction can be very helpful in the early years of home ownership since the majority of the payment early on is applied to interest rather than principle

  2. PROPERTY TAX DEDUCTION - some of the property taxes paid during the tax year may be deductible

  3. POINTS - If you paid points in exchange for a lower interest rate - those fees may be deductible

  4.  PMI - Private Mortgage Insurance may be deductible depending on annual income and when the payments were made

  5. WORK FROM HOME - depending on the square footage of your office space and how your work is structured you may be able to write off certain household expenses - your accountant will be able to advise you on whether this type of write off is applicable

While this list may not apply to all home owners it's good to aware of the tax benefits that exist. Again, be sure to consult with a trusted financial adviser and an  accountant before making financial decisions.

Please Note: This article is provided for illustrative purposes only. It is not an offer or commitment to lend money, and it is not an advertisement for a specific mortgage or a specific interest rate. Contact me to run the numbers for your situation.