The Tax Benefits of Home OwnershipMay 5th, 2014
Owning a home can offer you many benefits. As a homeowner, you may be eligible for certain tax breaks and deductions. Flowers Rieger & Associates, PLLC can help you determine which benefits you can claim to reduce the amount of taxes you owe each year.
The interest paid on your mortgage is tax-deductible as long as your loan is less than one million dollars. If you refinanced to get a lower rate or chose a home equity loan, your interest may still be deductible. If you own multiple homes, you can still deduct mortgage interest paid on your second home as long as you spend a certain amount of time at your second home each year, even if you choose to rent it out.
Just like your home loan’s interest, you can deduct your property taxes each year for as long as you own your home. You can find the information you need on the annual statement you receive from your home loan lender. If you bought your home this tax year, however, you cannot deduct the full year’s taxes—you will only receive a deduction for the portion of time you owned your home this year. Talk to FlowersRieger & Associates, PLLC if you aren’t sure how to find this information or how it applies to you.
If you chose to pay loan points to reduce the interest paid on your home loan, you can claim these payments on your tax return. You can claim points paid during the same tax year on your main home. If you have refinanced your home loan, your points will be deducted over the lifetime of the loan.
Are you a Tucson homeowner with questions about your taxes? Flowers, Rieger and Associates, PLLC is proud to serve individuals, couples, and families with personal tax preparation. Call our CPA firm today at (520) 327-8706 or click through our website for the information you need to get started.