Important Deductions for Homeowners
It’s nearly the peak of tax season, and while most people will file by the end of February, others will take full advantage of every moment leading up to the April 18 deadline (note the bonus three days filers get this year due to Emancipation Day, a federally-observed holiday).
Homeowners should be sure to claim every possible deduction available. The National Association of Realtors reports that homeowners save an average of $3,000 a year in taxes from mortgage-interest and property tax deductions. Below is a list of the most common tax deductions homeowners should be taking.
- Interest on mortgage
- Points on home mortgage and refinancing
- Property taxes
- Home office (square footage, insurance, utilities and repairs)
- Energy efficient tax credit
- Home improvements (deductions on loans and overall improvement and increased value on the home)
- Mortgage-debt relief related to a short sale or foreclosure (extended to include cancellations from 2015 and 2016)