Tax breaks are provisions for home buyers. It is wise to avail this provision allowed by the state so one can save money. But the question is do you know what are some tax deductions that any home owner could apply for?
RealtyBiz News says that current homeowners including potential home buyers "can make big savings via real estate tax deductions if they handle it right upon closing the deal." Following the tips given by Marian Schaffer, principal and founder of Southeast Discovery, below are some possible means to negotiate "real estate tax deductions."
According to Schaffer, homeowners can apply for Home Mortgage and Refinancing Points. The property owner can possibly "write off the points you've paid on both origination and discounts at the close of the deal." This is because lenders have charged the borrowers with fees "in which one point is equal to one percent of the loan principal." These fees can be deducted.
Another tax deduction is the Home Improvement Loan Interest. According to IRS, "the interest on a loan given to make improvements on a home is fully deductible, however the work must be defined as a 'capital improvement' for homeowners to take advantage of this break." Anything that increases the value of the home is defined as home improvements.
At Home Colorado also reports that another common tax deductible expense. One of these is the Property taxes. According to the website, "the amount paid may appear on your mortgage statement, although you should verify that the amount is correct as the mortgage company bases their figure on the date the taxes were paid which may or may not match the actual tax period."
Homeowner's Private Mortgage Insurance is also tax deductible. But one has to check if he or she qualifies in this provision. It is noted that "only homeowners whose income is below a certain threshold and who obtained their loan during a certain timeframe may use this deduction."
How about you? Do you know any other tax deductible? Share your insights in the comment box below.
