Home Ownership

It's Tax Time! Are You Prepared?

03/8/17  |  Liz and Ellie Local

We've compiled a few facts about deductions.

According to a recent National Association of Realtors survey—Profile of Home Buyers and Sellers—80 percent of home buyers view homeownership as a good investment, and 43 percent believe that buying a house is a better investment than putting money in the stock market. The association estimates that homeowners save an average of $3,000 a year in taxes from mortgage-interest and property-tax deductions.
We've compiled a few facts about deductions, courtesy of The Washington Post:
  • Mortgage interest on a refinance, a home equity loan, or a home equity line of credit may be deducted as an expense.
  • Private mortgage insurance may be deductible for a second property in addition to a primary residence (as long as the second home is not a rental unit).
  • Discount points — paid to lower the interest rate on a loan — may be deducted in full for the year in which they were paid.
  • Discount points on a refinance must be amortized over the life of the loan.
  • Home improvements made for medical reasons can be tax-deductible under certain circumstances.
  • Homeowners who work from home can generally deduct expenses for a qualified office — phone lines, heating, and electric expenses and renovations — including a portion of mortgage interest, property taxes, and insurance.
  • The deductibility of a mortgage varies with the length of the loan. Homeowners pay about 65 percent less mortgage interest with a 15-year mortgage than with a 30-year loan.
  • An energy-efficiency tax credit may apply to storm doors and energy-efficient windows, insulation, air-conditioning, and heating systems. The credit is currently 10 percent of the amount paid up to $500.
  • Mortgage-debt relief related to a short sale or foreclosure has been extended to include cancellations completed during 2015 and 2016.
Always verify any tax information with a certified public accountant or other tax professionals, or by checking with the IRS.
Good luck, now you can file your taxes like a real homeowner!

Read More Articles

View All

Work With Us

With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.

Let's Connect

Follow Us on Instagram