Tax season is sometimes one of the most stressful times of the year, as almost everyone is busy consulting their accountants and checking whether or not they missed anything out on their report. While aggressively deducting things on your list can be a cause for concern, there are certain things you can deduct from your taxes without fearing about attracting unwanted attention from the IRS.
According to Realtor.com, there are certain things that your accountant hoped you knew during tax season and its relation to homeownership. For instance, many people do not list off their home office in fear that this would prompt an audit from the IRS.
However, many accountants suggest on listing the home office, especially because this would help save you cash on utility, maintenance, and other expenses. Accountants further noted that declaring a home office does not immediately warrant an audit from the IRS.
Aside from this, the publication noted that many homeowners fail to realize that moving out of their houses can also entail certain tax reductions. As previously reported here on Realty Today, you can save on expenses, especially when you move to a new location because of job relocation.
There are, however, a number of conditions that must be met before you can deduct your moving expenses. First, your new location needs to be at least 50 miles from your previous home. Second, you should work full-time at your new job for no less than 39 weeks.
The aforementioned publication also stated that many homeowners do not deduct their mortgage interest because they believe that this would not help them at all.
The outlet stated that what most homeowners do not realize is that the interest can be higher than they expect.
"The bulk of that check goes toward interest," said accountant Martha Hartung.
To find out whether your mortgage payment is going to your interest, the outlet advised on checking the monthly statement to see if you can deduct this.
