Homeowner Tax Deductions To Take Advantage Of
Homeowner Tax Breaks
Tax season is here, and with Tax Day quickly approaching, it is getting down to the wire to turn in your taxes. As a homeowner, there are many tax breaks that you can take advantage of to help you get the most amount back on your taxes, including:
- Mortgage interest – you are able to deduct all of what you pay towards your mortgage interest, unless you have a home loan that is more than $1 million. If you own a second home, the mortgage interest on that home is also deductible.
- Points – if you paid for points to help get a better rate on your home loan, you can deduct them, as long as you do it in the right year. You are only allowed to deduct points on your mortgage in the year that you paid for them. If you bought points when you refinanced your home, the points can be deducted over the entire life of your loan.
- Taxes – a large part of your loan payments each month goes towards taxes, which will go into an escrow account for a once yearly payment. The taxes that you pay into your escrow account can be deducted as long as you own your home.
- Sale – if you sell your home, up to $250,000 in sales gains, or $500,000 if you are filing jointly with your spouse is tax free, as long as you owned the home for two years and lived in it for at least two of the five years before the sale went through.
When it comes time to protect your family home with the right homeowners insurance policy, contact the insurance professionals at Agape Brokers Insurance Agency in Hemet, California. We will work with you to ensure that you have the right amount of protection, all at the right price.
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