Did you purchase a home this year? If so, you are eligible for some great tax savings. The tax benefits available to homeowners can significantly decrease the cost of ownership, and most of these savings come in the form of tax deductions.
One of the best deductions out there for homeowners is mortgage interest. You can deduct all of the interest you paid on your mortgage for the year. Your mortgage lender will send you IRS Form 1098 at the end of the tax year so you will know just how much to deduct.
Keep in mind, though, that taxpayers may only deduct interest on $750,000 of qualified residence loans. (This is a new cap for mortgages beginning in 2018; it was previously $1 million, and older mortgages will be grandfathered into the old cap.)
Real Estate Taxes
The amount of money that you pay in property taxes each year can be deducted on your taxes. If you pay this amount out of an escrow account, then how much you paid for the year will also be included on your 1098 form. However, if you pay property taxes directly, then you’ll need to check your personal records to see how much you can deduct.
Ready to learn more about how purchasing a home can help you save on your taxes? Get in touch with Pro Tax Resolution right away. We’re here to help you with all of your tax issues!