HOMEOWNERSHIP TAX BENEFITS
Tax Deductions:
Mortgage Interest- Deduct up to $750,000 in interest payments. Real Estate Taxes- You can deduct state and local property taxes every year, up to $10,000/yr. Discount Points- If you paid for discount points when your loan closed, you can deduct them that same year. Mortgage Insurance- Private mortgage insurance, mortgage insurance premiums, VA & USDA funding fees are all deductible (unless your income is above the limit). Self-Employment Home Office- If you just work from home, you cant cloam this deduction. The deduction only applies to small business ones and self-employed workers who use part of their home regularly and exclusively as their primary place of business. Medically Necessary Home Improvements- Examples of these improvements include widening doors, installing ramps or lifts, lowering cabinets, and adding railings. Military Moving Expenses- If you're a part of the armed forces, have to more, and hace to pay out-of- pocket for expenses like transportation and storage of household and personal items, and travel and lodging from you old home to your new home, you can deduct these expenses
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Tax Credits:
Energy Efficient Improvements- Examples include solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, and fuel cell property. Mortgage Credit Certificates- Low-to-moderate-income buyers and first-time buyers may be eligible for mortgage credit certificates, which can give you credits on your interest for your tax return.
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Other Benefits: Home Sale- The capital gains tax exclusion allows you to avoid paying taxes on the first $250,000 in profits from selling your home if you're single, or $500,000 if you're married. 10.
For professional tax advice, please contact a tax professional
Shawn Hunt Loan Officer – The Hunt Team
SVP, Area Manager NMLS ID# 1098459 M: (443) 783-0910 www.HuntTeamMortgage.com CMG Home Loans | NMLS ID# 1820
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