Home Related Tax Write-Offs You Don’t Want to Overlook
As a homeowner, don’t overlook some possible areas of tax deductions you could qualify for. Researching the IRS guidelines is important, as everyone is not automatically eligible. www.IRS.gov
Home Office Deduction: Working out of your home has become more commonplace and the IRS has certain deductions you can take on your taxes relating to the home office. Some qualifying deductions include office equipment and software, fees charged to accounts, and even a percentage of home utilities such as phone and internet used for business.
Home Improvement and Energy Credits: Check out the IRS website for a list of home improvement credits you may qualify for if you made any renovations or home improvements that reduced your energy consumption. Maximum credits available are $1500 (30% of total cost).
Mortgage Interest & Property Taxes: The costs of owning a home are great, but luckily you can write off some of these expenses at tax time. Your mortgage interest may be deductible if the loan balance is up to $1,000,000. Also take a look to see if you qualify for PMI (Private mortgage insurance) deductions. In most cases, the amount you pay in property taxes each year is fully deductible.
Moving & Selling Costs: If 2010 brought about the sale of your home and a relocation you may be eligible for tax write offs that relate to the costs associated with these. You may quality for deducting selling costs (those associated with the sale of your home) such as broker fees, inspection fees, title insurance and other costs. If a new job caused your relocation (50+ miles away), travel fees such as moving costs, expenses for lodging, storage fees, etc. could be deductible.
Be sure to contact your tax preparer to confirm which home-related tax advantages apply to your specific situation.