The hardest thing in the world to understand is the income taxAlbert Einstein
It’s Money Monday today– and we’re focusing on: TAXES.
We know taxes can be challenging. They’re complicated, expensive, time-consuming, and to make this year even more special the Tax Cuts and Jobs Act (TCJA) of 2017 has made major changes that are confusing us all.
That said, we know we’re going to have to file every year anyway, so we went looking for some clarity on what has and hasn’t changed this year. While we are in no way tax professionals, we do have the power of Google, and we looked up some very smart people to get the best deductions to look into.
Maybe you have an accountant that takes care of this for you or maybe you’re waiting until the final hours to do it online yourself – either way you might be surprised by what you can (and cannot) deduct. So here’s our Top 10 deductions and credits for homeowners to help save you some money!
Mortgage Interest Deduction
Not sure if your mortgage qualifies? Check out the IRS’s handy flow chart here.
Mortgage Interest Credit
Mortgage Insurance Premiums
Home Equity Loans
Moving Expenses – For You AND Your Pet
Think this might apply to you? If you moved to a new job location that is 50 miles or more from their previous living situation, that may qualify for a residential moving cost deduction. This rule applies to the self-employed as well as employees. It also applies to those employees who work from home at least 75 percent (39 weeks) of the next year at or near the new job site. A self-employed worker must work at least 75 percent (78 weeks) of the next two years at or near the new job site.
Property + Real Estate Taxes
One thing to note: if you agree to pay the seller’s delinquent taxes from an earlier year at the time you close the sale, you are not permitted to deduct them on your tax return. This payment must be treated as part of the cost of buying the home, rather than as a property tax deduction.
Despite attempts to eliminate this deduction, the TCJA keeps it in place, but limits the total deductible amount of income, sales, and property taxes to $10,000, beginning in tax year 2018.
Mortgage Debt Forgiveness
Accidental + Casualty Losses
As always, if you have questions you should get in contact with a tax professional. If you don’t have one already – reach out and we can put you in touch with someone near you!