When you are trying to think about ways to save money on your taxes, you may not realize how easy it is to save money when you are a homeowner. There are so many tax deductions that you can take advantage of simply because you own your home. These are factors that you may not have considered when you were purchasing your house, but they can be very beneficial. Those that run their business out of their home are also capable of deducting a substantial amount of money, helping them to minimize their taxes. Here are the top five tax deductions for homeowners that you should take advantage of, especially if you are self-employed.
Home Office Deductions
There is a substantial list of deductions for people that are homeowners. You will be able to save an incredible amount of money. There is the cost of heating, electricity, gas, gasoline for your car, and the depreciation of all of your computer equipment. An accountant will be able to look at everything that you have to make these deductions. You can also deduct property or real estate taxes.
Property Taxes And Selling Costs
All homeowners have to pay property taxes. These are deductible. They are fully deductible from your income. This will come directly out of your taxes when you file them and depending on how much you pay; you could end up saving quite a bit. For those that decide to sell their homes in Old Naples Florida, they can deduct that from their taxes as well. There is always the cost of paying for escrow fees, points, and many other factors. It will be very easy for one of these professionals to determine exactly how much you can deduct. As long as you are the owner of the home, this is something that will be available to you.
Capital Gains Exclusions And Mortgage Tax Credit
Another possible way to deduct money from the amount of taxes that you will pay is if you are married, you can keep up to half $1 million in profit from the sale. If people file separately, this will only be $250,000 each. This is a fantastic way to save money. Otherwise, you would be paying tens of thousands of dollars on the capital gains that you would earn. There is also a mortgage tax credit which is a home buying program. It’s perfect for first-time homebuyers. This can be up to 20%, something that will be subtracted from the amount that you will owe for taxes. It’s a great way to save an additional amount of money.
Home Improvement Loans
One final deduction that you might want to consider has to do with home improvement loans. If you are taking out a loan on your home in order to make a home improvement, this is also deductible to some degree. You may also have the ability to deduct other loans that come directly out of the equity of your home. Loans that qualify include those that are for putting in a garage, swimming pool, new fence, or even a new roof. This could save you thousands of dollars, and is just another way for homeowners to take advantage of the fact that they do own a home.
Now that you have this information, you should consider all of your options regarding what you can deduct because you are a homeowner. Even if you have recently sold your home, this can be an excellent way to save money on paying taxes. Talk to your accountant today about all of the other possible deductions that are granted to homeowners.